contents insurance invalidated with lodger?

patrick_bs15

Hi
Reluctantly (due to uncertain work situation) I have decided to take in a lodger.
Am following the process of renting out a spareroom as described by a well known site

My question is: has anyone else done this and had to change insurers so that they have valid contents insurance? If so, which company did you use? (Am aware about implications for council tax)

Also, let's say I charge say £475/month (incl.). My understanding is that I would be entitled to keep £4250 tax free, then opt in to the rent a room scheme and tell HMRC (after filling in shorter 4 page tax return) that tax on actual profit (method A) is most suitable for me. Does that sound about right?

Would welcome any other constructive advice from people who have taken in a lodger (as a live in landlord/landlady) or knows someone that has.

Thanks.

nidO

Most insurance policies shouldn't have an issue with you having a lodger. Generally they will just contain an exclusion that any malicious damage to your property caused by your lodger won't be covered.
I'm currently insured (with a lodger) though Aviva.

sheramber

patrick_bs15 wrote: »

Hi
Reluctantly (due to uncertain work situation) I have decided to take in a lodger.
Am following the process of renting out a spareroom as described by a well known site

My question is: has anyone else done this and had to change insurers so that they have valid contents insurance? If so, which company did you use? (Am aware about implications for council tax)

Also, let's say I charge say £475/month (incl.). My understanding is that I would be entitled to keep £4250 tax free, then opt in to the rent a room scheme and tell HMRC (after filling in shorter 4 page tax return) that tax on actual profit (method A) is most suitable for me. Does that sound about right?

Would welcome any other constructive advice from people who have taken in a lodger (as a live in landlord/landlady) or knows someone that has.

Thanks.

If you opt in for the rent a room allowance you deduct 4250 from yout total rent received and calculate any tax due on the excess over that amount.

If you opt for method A you add up all your rent received and deduct total expenses then calculate tax due on the profit- rent received less expenses.

You cannot combine the two as you have suggested.

from 2016 the rent a room allowance will be increased to 7250

FutureGirl

I don't think your home insurance will be 'invalidated'.

But on the majority of the policies I've seen, the policy will not cover the lodger / paying guests contents. Nor will it cover some incidents that happen due to the lodger / paying guest.