CITY residents thinking of letting their homes out for Royal Ascot at York have been warned they may not be insured.

Some homeowners' existing policies may not cover them in the event their homes are damaged or if tenants have an accident during the five-day racing festival.

Agents in the city have urged people thinking of cashing in on 2005 to check their small print or take out special buildings and contents insurance to ensure they are protected.

The warnings came as the Evening Press revealed one 21-year-old student had put an £18,500 price tag on anyone who wanted to let his Emperor's Wharf penthouse apartment for seven days.

He was one of a number of potential landlords seeking top dollar prices to put up high society for a few days.

Eleanor Jones, of York Homefinder, said they were not taking on clients for Royal Ascot, but reiterated the need for proper insurance.

Leading home insurer Direct Line said their policies would provide cover for prospective Ascot landlords who were existing customers.

But a spokeswoman said there would be significant exclusions in such a policy, including cover for household possessions.

"They also wouldn't be covered if anything was spilt on the carpet or if there was an accident," she said. "Existing policy holders would have to contact us first."

Meanwhile, BBC Look North presenter Harry Gration revealed that letting agents had visited him at his home in Tadcaster Road to ask if he was interested in renting his home out and cashing in.

He said he had also been visited by someone claiming to represent a foreign embassy, but said he would only consider renting out his home if he was offered "silly money".

He said: "If someone was to make me an offer I couldn't refuse then I might be persuaded to do it.

"But it is something I don't know if I would do at the moment."

Updated: 09:30 Monday, April 12, 2004