Does home insurance cover lodgers?
Key takeaways
You can earn up to £7,500 a year tax-free by letting a furnished room in your home
You’ll need to tell your home insurance provider if you let a room to a lodger, and you might have to pay an extra insurance premium
You should have a lodger agreement or licence when you let a room to a lodger
How does having a lodger affect your home insurance?
A lodger affects your home insurance because insurers may see another person living in your home as an extra risk:
Increased risk of damage
More people living in the house means a higher likelihood of accidental damage to property.
Potential for theft
A lodger could potentially facilitate theft by allowing unauthorised access to your home or by stealing belongings themselves.
Liability concerns
If a lodger gets injured while in your home, they may file a claim against you, increasing your potential liability.
Less control over security
You may not have as much control over the security practices of a lodger compared to your own family members. They might also bring guests to your home.
When you take out home insurance, the insurer will want to know who lives at your home and their relationship to you - for example, whether you’re a family unit, have kids, or let a room to a lodger. You might need to pay an extra premium if you have a lodger, or there might be exclusions added to your policy.
Some home insurance providers might not cover you if you have a lodger, so you may need to find a new provider.
Do I need to tell my insurer about a lodger?
Yes, you should tell your home insurance provider before taking in a lodger. If you do not tell your insurer, your policy could be invalidated or a future claim could be rejected.
What is the Rent a Room scheme?
The Government’s Rent a Room Scheme lets you earn up to £7,500 per year tax-free from letting out furnished accommodation in your home. If you earn more than this from your lodger’s rent, it might be taxable and you will need to complete a tax return.
You can then opt into the Rent a Room scheme and claim your tax-free allowance. You can choose not to opt into the scheme and instead record your income and expenses on the property pages of your tax return.
Can I let out a room in my home?
Whether you can let a room in your home depends on whether you own your home, or rent:
If you own your home outright (no mortgage)
If you own your home outright (no mortgage), then you are free to rent a room to a lodger.
If you have a mortgage
If you have a mortgage, you should let your lender know you will be getting a lodger. Most lenders will have no problem with this at all – some will even take the extra income into account when assessing mortgage affordability at remortgage time.
If you're a leaseholder
Check your lease first. Some leases have clauses that prohibit subletting or require permission from the freeholder before you can go ahead.
If you’re renting from a landlord
Check your tenancy agreement to see if you can sublet a room. In most cases, you can't do it without permission from your landlord.
What’s the difference between a lodger and a tenant?
Lodgers are those who live with their landlord and share common areas like the kitchen and living room, while tenants will have exclusive rights to the property, with the landlord living elsewhere. If you have a lodger you will normally let the room using a lodger agreement or licence, and with this type of contract, the landlord has more rights.
If you let a whole property to a tenant, this will normally be done as an Assured Shorthold Tenancy (AST), which gives the tenant more rights than a lodger would have. You will normally need a buy-to-let mortgage to let your property to a tenant, or ‘consent to let’ added to your existing mortgage - while it’s also a good idea to have landlord’s insurance.
Tenants usually have the right to enjoy their home in peace and are subject to specific eviction notice periods, but lodgers typically have fewer rights and can be asked to leave with less notice.
What happens when I add a lodger to my home insurance?
When you notify your insurer about your new lodger, be prepared for a few questions. They might ask you to vet the lodger for any criminal record or enquire about their student status or right to live in the UK.
Your insurer may suggest you add specific cover like legal insurance as an add-on to your cover or alternative accommodation for your lodger if your home becomes uninhabitable due to an insured event. These conditions help protect both you and the insurer from potential risks associated with having a lodger.
Your insurer might also add exclusions to your home insurance policy – such as theft if there is no forced entry – or charge you an extra premium. You will need to check with your home insurance provider whether the policy will cover your lodger’s possessions or if they need to take out their own contents policy.
MoneySuperMarket data shows that the average cost of contents insurance in March 2026 was £65.63
^ .
Will I need a new home insurance policy if I get a lodger?
In some cases, your insurance provider might refuse to cover you as it may consider having a lodger too big a risk. If so, you’ll need to shop around for a new policy - you can compare home insurance providers with MoneySuperMarket.
If you rent rooms to multiple lodgers, your home might be classed as a House in Multiple Occupation (HMO). This might need a new home insurance policy and you might also need a licence from the local council.
Who else needs to know about your lodger?
To make sure you are covered, you should tell the following organisations if you take in a lodger:
Your mortgage lender or landlord
Your freeholder if your home is leasehold
The local authority (for council tax purposes)
Your water company (if you are on a single occupier tariff)
HMRC if you earn more than £7,500 in rent a year
Are my lodger’s belongings covered by my home insurance?
Your lodger’s belongings usually won’t be covered by your home insurance unless your policy specifically says they are. They may need their own contents insurance to protect their possessions.
How much does home insurance cost if I have a lodger?
The cost of home insurance with a lodger depends on your insurer, your property, the type of cover you need and whether your provider sees the lodger as an extra risk. Some insurers may charge an additional premium, while others may add exclusions or ask you to take out a different policy.
Comparing home insurance with MoneySuperMarket
MoneySuperMarket offers a convenient way to compare home insurance quotes and find the right policy at a competitive price.
Different insurers take differing views of letting a room to a lodger, so make sure you shop around for the right policy for your needs.
Author
Emma Lunn
Personal finance expert
Emma has written about personal finance for almost 20 years, with a career spanning several recessions and their inevitable consequences. Emma’s main focus is helping people learn to manage their...
Reviewer
Mehdi Punjwani
Insurance specialist
Mehdi is a financial writer and editor with over six years of experience in personal finance. He has written for organisations and publications including Equifax, The AA, and USAToday, covering a...
