Berkeley Alexander is urging brokers to advise clients on adequate Buildings & Contents insurance following news from LV= that lodger numbers in the UK have nearly doubled this year to almost one million.

The wholesale insurance intermediary says the rise in homeowners taking in lodgers – due it is believed to the downturn – highlights both the increased market opportunities for brokers in the rental sector and the need to advise clients appropriately.

“Standard home insurance cover usually applies to the ‘family’ which refers to husband, wife, partner/civil partner, children and other relatives who permanently live at the home,” said Mark Hutchings, sales and marketing director at Berkeley Alexander.

“A lodger would not form part of this policy wording definition. Some insurers will not provide home insurance cover where lodgers are in place but many others will simply apply a premium loading or restrict cover for theft by violent and forcible entry only.

“Whilst the extra income for the homeowner is welcomed in assisting paying those ever increasing food, fuel and utility bills, the 954,000 households that currently have lodgers in the UK must tell their general insurance provider of the additional person in their household to prevent having a claim repudiated.

“This is a good time to contact clients and ensure that if they have a lodger or are planning to take in a lodger that they have the correct cover.”