Debtors taking in lodgers ‘could be more at risk’

Indebted people trying to generate money through subletting rooms in their houses could find themselves more at risk, or unable to get adequate insurance on their homes, it has been suggested.

Responding to recent statistics from Spareroom.com, which revealed that houses with paying guests have increased over the last 12 months from 477,000 to 720,000, Malcolm Tarling of the Association of British Insurers warned people to ensure they notify their insurers of their change of circumstances.

“If you have got an existing policy and you take in a lodger you should also advise your insurance company because it may affect the policy,” he said, adding that customers should always inform insurers about any change to risks.

Some precaution specialists do not offer cover to people who do take in lodgers – suggesting that people with debt management problems might be better off not letting their spare rooms, in case an emergency situation arises and they are not fully insured.