If you are lucky enough to have a driveway in London it’s tempting to rent out some parking space for major events, but does your insurance cover any damage?
With thousands of Manchester City fans expected to drive to Wembley for the FA Cup final on May 16th, homeowners near the stadium are being tempted by parking space rental apps offering them the chance to cash in by renting out their driveways as matchday parking.
Ahead of the match this weekend, home insurance experts at Uswitch are warning that what seems like easy extra income could come with serious financial risks if they don’t inform their home insurance provider.
Five reasons to think twice before charging people to park on your property:
It may count as running a business:
Most home insurance policies are designed for residential use only. Renting out your driveway for profit, even occasionally, can be classed as a commercial activity, meaning your policy may no longer apply.
You could lose liability protection
If a driver trips, slips, falls or even damages their vehicle on your property, you could be held responsible. Standard home insurance may not cover incidents linked to paid parking arrangements.
Your insurer may increase your premium
Advertising your home address on a parking app, as well as regular access to your property by unknown drivers, especially during high-traffic events such as football matches or music concerts, can raise the risk profile of your property. This could lead to higher home insurance premiums.
Damage claims could be rejected
In the event that a parked car is damaged while on your property or causes damage to your property, while in a commercial agreement with you, you’re going to want cover. Yet your insurer could refuse to pay out if they weren’t informed you were renting the space in the first place. Never underestimate the damage that can be done to your property by a tired driver unfamiliar with your driveway layout.
Your policy could be invalidated entirely
Failing to declare that you’re earning money from renting your driveway could be seen as failing to declare a change in circumstances, giving insurers grounds to void your policy altogether.
Uswitch insurances expert, Leoni Moninska, said:
“Renting out your driveway during a major event like the FA Cup final might seem like a quick win, especially with high demand from travelling fans, but there are a few things to consider beforehand.
The main thing to know is that you should inform your home insurer before you rent out your driveway for money.
If something goes wrong, whether it’s damage to your home, theft or an injury on your property, there’s a chance your claim won’t be paid. In some cases, your entire policy could be invalidated – a real own goal!
No amount of extra income is worth being left without cover. If you’re considering this as an option, ahead of the FA Cup, make sure that you speak to your insurer first, before even listing your space on parking apps.”
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