Homeowners banking on lodgers
Updated on 13 November 2008
Britons would consider taking in a lodger if their financial situation worsened in the credit crunch, new research has found.
The study by AA Insurance found 70% of the UK population have never been a lodger - although 20.4% are now considering it.
And nearly half (46%) of people from the university towns of Oxford and Cambridge said they would consider a lodger if their financial situation became more difficult.
But the survey revealed lodgers in student towns could also cause more damage to the properties they lived in.
More than a quarter (27.78%) of people from Cambridge said they had claimed against their lodger for damages made to their home, compared with the national average of 9.5%.
The study also revealed up to three million homeowners who currently have a lodger could have an invalid home insurance policy - because they failed to notify their insurer about their housemate.
Nearly half of landlords admitted they were not aware of the need to check their policy, and an additional quarter wrongly assumed their current insurance would cover their lodger's belongings as well as their own.
Simon Douglas, director of AA Insurance, said: "More people are becoming lodgers and landlords because of the current financial situation.
"We are urging all landlords or landladies to check their insurance policy before any new lodgers move in.
"I am certainly concerned by the number of people who appear to be ignorant of this."
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