New data released by Saga Home Insurance suggests parents may need to check their home insurance policy terms if an adult child returns home and starts running a side business.
The warning comes as online interest in side hustles has increased sharply ahead of Christmas.Saga’s survey of 500 adults found that nearly half have moved back in with a parent or guardian after the age of 21.
Among those who return, around one in ten start a business from the family home.At the same time, search trends are showing an early seasonal lift in demand for flexible work.
Google data points to rising interest in “Christmas jobs” and “work from home jobs”, and Saga highlights TikTok searches in the UK showing significant increases for terms such as “best side hustles”.
Why insurers need to know about business activity
Anna Thunstrom, Product Manager at Saga Home Insurance, says the key issue for insurers is the change in risk.
Running a business from a domestic property can affect liability and contents cover, particularly if stock is stored on the premises or clients visit the home.
She points out that insurers base premiums on who lives at the property and on the activities that take place there. If those details change and are not fully disclosed, future claims could be rejected.
You don’t usually have to inform your insurer if a student returns for holidays or when a spare room is used as a standard home office.
However, red flags include partners moving in, new business activities, and specific financial or legal repercussions of running a business from your home.
Other points families should consider
The growth in home-based side hustles has also given rise to other areas that many people won’t be aware of – topics we’ve covered on ByteStart recently.
Tax reporting and the trading allowance
If your trading income is on a small scale, it may fall within the £1,000 trading allowance. This means you don’t need to inform HMRC of your site hustle income.
Once your business earnings rise above this level, or if someone chooses to deduct expenses instead, they must register for Self Assessment and report the income to HMRC.
Parents who provide space or help may also want clarity about what counts as personal income versus a business activity operated from their property.
Platform reporting rules
Since 2025, digital platforms such as Vinted and PayPal have been required to report sellers’ income (above a certain level) directly to HMRC.
This applies to marketplace sales, delivery work, tutoring and other popular side hustles.
Families often assume small sales stay under the radar, but the reporting regime means HMRC will routinely receive this data.
ByteStart has a guide on platform reporting rules and what they mean for casual sellers.
Do you have the correct business insurance in place?
Some ‘side hustles’ may grow into larger businesses that involve dealing with members of the public or providing professional advice to clients. You can read this article on the types of insurance you might need for a side hustle business.
It’s worth considering separate cover, such as public liability insurance or professional indemnity insurance, if this is the case.
Obviously, home insurance won’t cover claims arising from these activities.
What should you do?
The theme from the Saga survey is very straightforward.
If an adult child moves home and starts a business, or brings a partner with them, you need to check the terms and conditions on your existing home insurance policy and let your insurer know.
In most cases, you don’t usually need to inform your insurer for routine returns during university holidays or when a room is used purely as a study or gym.
We recommend you review your existing documentation and contact your provider if needed.
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