Wimbledon: Using your home to ‘net' you some cash

With Wimbledon kicking off in a fortnight's time, many local residents will be looking at ways to rake in the cash by making the most of their prime location. esure home insurance offers advice to homeowners who are looking to rent out their driveway or garage to spectators, set up a BBQ on their front lawn to feed the masses, put up a lodger, rent out their entire home, or even turn their property into a B&B, on how to make sure they're adequately covered.

Turning your home into a B&B

This could be seen as a great money earner, especially if your home is on the doorstep to Wimbledon or another major event or venue. esure home insurance customers who decide to turn their home into a small B&B will still be covered under their standard buildings and contents policy. However, there would be a few conditions imposed due to the additional risk: the main policyholder must still live in the property; there must be facilities for a maximum of six guests; and a fire certificate must be obtained. Some insurers may also decide not to provide accidental damage cover due to the likelihood of damage by guests.

For any larger B&B conversions, the policyholder would need to purchase specialist business insurance either direct or through a broker.

Lodgers

If you're thinking about renting out your spare room to earn you some extra cash then it's important to check how many lodgers you're allowed to have staying with you at any one time and if any other exclusions would apply to your home insurance policy. esure home insurance provides cover for a maximum of one lodger at any one time.

Driveway and garage rental

Renting out your driveway or garage may seem like an easy way to make money - especially around the Wimbledon area where parking is hard to find and London parking charges are high - but it's important to make sure that you call your insurer before turning your property into a car park. Renting out an integral garage could invalidate your home insurance or your home insurer may add restrictions to your policy throughout the rental period.

Working from home

An abundance of passing trade as tennis fans walk to the grounds has led to the use of front gardens and driveways to sell food, drinks, t-shirts, and so on. You might not be covered for selling anything from your front garden, so it's important to check with your insurer before you start selling anything.

esure will also provide cover where the property is partly used as an office - perhaps to print flyers or create tennis merchandise for passing trade - but this excludes cover for tools or equipment that may be used wholly, partly or occasional use in connection with the policyholders trade or profession.

House swapping

Some local residents see the Wimbledon fortnight as a time to escape the crowds and house-swapping is becoming ever popular. With a house-swap, there is good faith from both parties that you'll treat the other person's home and its belongings as if it was your own. However, there is an additional level of risk associated with having a stranger - whom perhaps you've only spoken to either on the phone or by email - staying in your house.

It's crucial to call your insurer to discuss your house-swapping arrangements as soon as possible as the level of home insurance cover offered may be affected and restrictions on the policy may be enforced due to this additional risk.

With esure, the homeowner would still be covered by their standard buildings and contents policy. However there would be a few conditions:

restricted theft cover (there would need to be evidence of forcible or violent entry)
minimum security requirements (e.g. window locks in place, particularly on lower level windows)
Insurers would also encourage homeowners looking to house-swap to take steps to secure their valuables and property - ideally taking high-value items (such as jewellery) with them or locking them up in a secure safe, out of easy reach from the new occupants. There would be no additional premium to holiday-swap - just more restrictions and limits on the level of cover offered due to the increase in risk.

Mike Pickard, Head of Risk and Underwriting at esure home insurance, said: "In the current economic climate everyone is looking at ways to earn extra cash and make the most of what they've got - even their home, driveway and front lawn. Those looking to use their home to bring in some additional money - particularly during the Wimbledon frenzy - by setting up a B&B, renting out a spare room to an avid tennis fan or perhaps turning a driveway into a car park, should do their research and contact their insurer first.

"Don't let an ‘ace' business idea turn into a disaster. Making sure your home is adequately covered and that your property is properly secured should be your number one priority before letting any paying guests use your home and its facilities."