Does renting rooms in your house elevate your house insurance?

Discussion in Home & Property Insurance started by jtucci21 • Jan 17, 2014.

  1. jtucci21

    jtucci21Member

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    Pretty much as the topic says - I'm wondering if renting rooms in my house would increase my house insurance. I'd still be living there
     
  2. daimashin

    daimashinActive Member

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    I'm not sure but I've never heard about it. Why would renting rooms increase house insurance? What makes it different than having relatives and friends come stay with you other than receiving money? Even if it does, just say that they're your friends and share the same place with you.
     
  3. Peninha

    PeninhaWell-Known Member

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    I don't think the insurance has relation with the fact that you're renting rooms at your place, it's not their business. If you're buying your house on credit to a bank that is another issue and you can't do it because it's illegal, but it's not insurance companies business to know who is living there.
     
  4. ACSAPA

    ACSAPAWell-Known Member

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    If you run into problems with renting rooms for people to stay in, there's a website that lets you rent rooms and closets in your house to people who need storage. So if you can't shelter a person, you could shelter their stuff and charge a storage fee. There are also sites that let you rent out your car for a few hours to people who need it for shopping or short trips.
     
  5. JoanMcWench

    JoanMcWenchActive Member

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    It's a good question. I can see how it may cost more. Having more people in the home opens the home up to more risk. I think it may depend on the type of insurance you have as well.
     
  6. LindaKay

    LindaKayActive Member

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    That is interesting. I never thought about it. I could definitely see why it might cause an increase, but if they don't ask, I wouldn't tell them?
     
  7. remnant

    remnantActive Member

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    Of course the premium is bound to increase. This is calculated on the basis of perception of increased risk. Renters assume that they own the dwelling place based on the fact that they are there legally. So what can go wrong if one person occupies a house would have a multiplier effect if 'co-owners' increase with a proportionate increase in income. Its not comparable to housing your relatives because you might come into contact with a rent tribunal or building inspectors who are usually in touch with insurers.
     
  8. explorerx7

    explorerx7Active Member

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    This is an interesting question. Knowing how the insurers operate I would be inclined that they would want to apply additional charges for this type of situation. However, I would not see that there would be any more risk involved than if additional family members or friends were being accommodated but anything to make more money is the insurers ultimate aim. This is pure speculation on my part which I suspect may be true, however, it would be good for you to check it out because this is an important issue.
     
  9. Ke Gordon

    Ke GordonWell-Known Member

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    I rent a room in my home, but I am no about to advertise this fact to the insurance company. When I first set up the policy, I am not even sure if it was asked, and I was not renting a room at that time anyway. I mean if they ever asked me directly, are you renting a room..of course I would tell them..but I just pay my premium, my homeowners insurance company never talks to me.