Alternative accommodation cover

What is alternative accommodation cover?

If the unfortunate happens and your home is suddenly left uninhabitable and you have alternative accommodation insurance in place, your insurer will help you find suitable accommodation and pay the costs so you’re not left homeless whilst works are being carried out.

For a home to be classed as being uninhabitable it means that it’s either structurally damaged or lacking in the essential attributes for daily living such as running water, heating, electricity and sanitary facilities. It’s worth checking your policy and being clear on what is and what isn’t classed as damage that requires you to evacuate. Not all policies include alternative accommodation cover but it can be added to your policy separately for an additional cost.

How does the claims process work?

Before your insurer allows you to use your cover, you will have to have a visit from an independent loss adjuster to assess the damage and the effect it’s having on your living conditions. Once they’ve completed a report on their findings, they will share these with the insurer. If it’s then been decided that you need to leave your property whilst work takes place, your claim will be processed. In some cases, the adjuster may suggest you stay in the property whilst the works are being carried out. This is a decision based not just on the work that needs to take place, but also on the level of upheaval and change for your family.

What alternative accommodation will be provided?

Alternative accommodation insurance works on the basis of like for like accommodation cover. This covers the size and location of your property in an effort to minimise the effects it has on your general day to day living. The insurer will take into consideration things such as having to take children to school, regular activities you and your family take part in and your daily commute to work. In some instances, a like for like option won’t be available and you’ll have to check into a hotel or bed and breakfast until something more suitable becomes available.

Are my expenses covered?

This answer to this question will vary depending on the insurance provider and type of policy you take out. In general, if you have like for like alternative accommodation cover then this should also cover your expenses and living costs. If your costs are more expensive than your normal living costs you will be reimbursed. If you’re able to live in your home but don’t have access to a kitchen, your policy should cover you for eating out. Some insurance providers will also cover you for putting your pets into kennels or catteries whilst your home is being repaired.

Alternative accommodation cover for renters & landlords

If you own a property which you rent out it’s advisable to make sure you have alternative accommodation cover if your tenants do need to move out of the property if it becomes uninhabitable. If you don’t have suitable cover it may end up being very costly. It’s worth noting that if you don’t have cover and your tenants have to leave the property, they won’t have to pay any rent.

If you live in a rented property it’s worth checking with your landlord what plans are in place if there was a reason for you to be evacuated from your home and what your options would be. If there isn’t a suitable plan in place you may want to negotiate with your landlord and insist they take out additional cover.

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