Home Insurance for Money-Making Schemes

Home insurance for money-making schemes

With the credit crunch biting more of us are looking to not just save money, but make more money too. With only so many hours in the day it may not be possible to take on more work such as a part-time job and so many homeowners are looking at ways that they can make cash from their properties instead.

From house swapping, to welcoming lodgers to working from home, there are many ways in which your home can bring in some additional money. However, a great business idea can quickly backfire unless you have suitable home insurance in place.

Here we look at some common money making ideas based around the home and examine the levels of home insurance you will need to give yourself a safety net.

Home insurance for… bed and breakfasts

If you have a home near to a popular resort or close to a major event you may want to offer bed and breakfast facilities. However, if you want your standard home insurance to apply while you use your property in this way you will normally need room for a maximum of six guests and hold a fire certificate. It may also be difficult to get accidental damage cover because guests are highly likely to cause some damage.

Those looking to turn their home into a bed and breakfast on a permanent basis should seek out a specialist home insurance policy.

Home insurance for… working from home

Turning your home into an office space can give you time to earn some extra cash, particularly if you find a business opportunity online. However, you should see if your home insurance policy will cover business equipment – items that are used specifically for a trade may be exempt from a policy. This can include computers, fax machines, printers and more.

Home insurance for… home sales

Hosting a barbecue on your front lawn or even just emptying out the garage and selling off any unwanted goods is a great way of earning some quick cash in the heat. However, you should contact your insurer first to see if you will be covered – it could be that selling items from your garden for example will mean you need personal possessions cover.

Home insurance for… lodgers

If you’re planning to rent a room call your home insurance company first. Most insurers will place a limit on the number of lodgers they will allow you to have and the circumstances in which they are covered.

Home insurance for… rentals

Many people living close to a major sporting event, such as Wimbledon, choose to rent out a garage or driveway because parking can be so difficult to find close to popular sporting events. However, you must contact your insurer first because renting out a space can invalidate your policy and there may be restrictions added throughout the rental period.

Home insurance for… house swapping

Fans of the movie The Holiday know all about house swapping – where you swap places with someone else for a period of time using the good faith that they will treat your property as their own. However, having a stranger stay in your home – someone you have perhaps only met over the phone or via email – has an added risk and home insurance providers will almost certainly impose restrictions on your policy and must be informed beforehand. Esure home insurance for example, does allow homeowners to be covered during a period of house swapping but restricts theft cover to state that there must be evidence of forcible or violent entry; and it states that minimum security requirements must be in place, such as window locks.

How to find the right home insurance policy

Whatever your money-making scheme it’s important to check with your home insurance provider before you get it under way and ensure that your cover is still applicable.

If your current home insurance provider will not cover you for an ongoing scheme, or you feel its restrictions are too tight, then you can always shop around for home insurance elsewhere.

Use a comparison website to compare home insurance online and find a cheap deal. Then, from there, give the insurer a call and consult it about your plans to see if the cover will still apply.