Check home insurance when taking on lodgers

A group of industry experts has warned that households who sub-let their properties could invalidate their home insurance if they do not declare the extra person to their provider.

According to the Association of British Insurers (ABI), policy providers should always be informed of any extra dwellers who take up residence in a property to avoid hefty costs if an accident occurs.

The group suggested that the recession may have caused more people to allow lodgers to stay in a spare room to save money on mortgage repayments, but they could be hit with home insurance premium rises.

Malcolm Tarling, spokesperson for the ABI, said: If you are applying for insurance and you are taking a lodger, or if you have got a lodger, you should disclose that to your insurance company .

moneysupermarket.com recently said that hosting dinner parties instead of going to a restaurant may lead to more accidents to be claimed on home insurance .