Homeowners hope to strike Olympic gold says Direct Line research
21st June 2011
Nearly one in three (31 per cent) homeowners would consider securing Olympic gold by renting out rooms to visitors during the 2012 London Olympics, reveals new research from Direct Line Home Insurance.
More than 1,000,000 might have missed out on Olympics tickets but Direct Line’s nationwide study shows 31 per cent of homeowners are considering renting out rooms, becoming Olympic home hoteliers during the Games. This number rises to almost half (45 per cent) of Londoners. Homeowners as far afield as Land’s End and John O’Groats are considering capitalising on the Olympics tourism boom, hoping that visitors will take the opportunity to view more of the UK than just the stadium in Stratford.
Direct Line is launching temporary cover for the Olympics for its house insurance policies to ensure customers are clear on what is and is not covered if they do decide to become a Games hotel.
The research reveals average prices per room per night would be a relatively modest £43 – equivalent to £731 for someone renting a room for the entire event. However, London homeowners would charge an inflated average of £53 a night.
Just 16 per cent of respondents say they will be Olympic avoiders and will not be celebrating the games in the UK in any shape or form.
Direct Line is urging anyone considering renting rooms out for the Olympics to think carefully about the potential insurance implications and has amended its policies to ensure customers are clear on the potential costs.
Andrew Morrell, head of home insurance at Direct Line, said: “The Olympics will be a massive event for the UK in 2012 and already excitement and anticipation is building up with people considering the possible financial benefits of renting out rooms.
“Anyone who is planning on becoming an Olympic home hotelier needs to think carefully before going ahead. If people have the space to do it, renting out a room or even a number of rooms does make sense but anyone who doesn’t consider the insurance implications could find their moneymaking scheme leaving them out of pocket.”
Direct Line’s temporary landlord Olympic policies will not cover malicious damage by guests and accidental damage cover will be ruled out for the period of the let.
Direct Line Olympic Survey Results
- More than two-thirds of homeowners (67 per cent) considering renting out rooms would rule out offering accommodation to smokers
- 29 per cent would not rent to under-21s for fear they would be too wild
- Just one in 20 of those who plan on renting out rooms would use the cash for a holiday abroad
- The overwhelming majority (79 per cent) plan on staying in their home and just renting a room
- More than 54 per cent of people surveyed intend on watching the Olympics on TV while 15 per cent intend to go to at least one live event
Notes to editors
Temporary landlord cover for the Olympics – sporting or special event
Property let for a short period coinciding with a sporting or other special event for example, London 2012 Olympic Games, Wimbledon, Open Golf, Manx TT would be acceptable, subject to:
- Period of let not exceeding six weeks
- Not occupied by more than two tenants or one family
- Customer is claim free
The following terms apply and the policyholder should be made aware of them:
- No accidental damage cover whilst property let
- Theft cover is restricted to forcible and violent entry only
- Malicious damage by tenants is excluded
- Squatters cover is excluded
* Consumer Intelligence carried out an online poll of 2,286 UK adults aged 18+ on behalf of Direct Line, 18 to 24 May
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Started in 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It provides car, home, travel and pet insurance cover direct to customers by phone or on-line.
Direct Line general insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Direct Line and UK Insurance limited are both part of Direct Line Insurance Group plc. Customers can find out more about Direct Line products or get a quote by calling 0845 246 3761 or visiting www.directline.com