Consumers who are considering making their own biodiesel in order to save money must first check with their home insurance provider as their cover may not extend to such activities.

According to Defaqto, most policies require people to keep their homes in an acceptable state of repair and take reasonable steps to reduce the risk of accident and injury.

The company claims insurers may reject a claim from somebody who damaged their property when making biodiesel, as it could be argued they were not taking reasonable steps to reduce the chances of harm.

Mike Powell, consultant for general insurance at the firm, said anybody considering this plan of action must consult with their policy provider before doing so.

"The dangers of producing your own biodiesel are very real; however, for some people the savings to be made are very enticing. If you are intending to manufacture your own biodiesel, you should first check with your home insurer," he stated.

Defaqto claims to provide timely and accurate financial information to different layers of the financial sector.

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