Alternative Accommodation Insurance
There could come a time when you and your family are required to leave your home temporarily. This can be due to an incident that makes your house uninhabitable, such as a flood or fire, this can be covered by your home insurance.
If this was to happen, you need to check if you are covered by alternative accommodation insurance. This will provide peace of mind that you and your family can get comfortable temporary accommodation whilst waiting for repairs/maintenance to be complete. If you would like to read more information or learn more about the pricing of business landlord insurance, you can do so here .
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What is Alternative Accommodation Insurance?
This type of policy covers the cost of arranging temporary accommodation whilst your primary residence remains uninhabitable. Usually, the policy is an add-on to your primary buildings insurance coverage. As a result, it’s always worth checking with your insurance provider to see whether your current policy covers the cost of alternative accommodation to avoid any unwelcome surprises.
How Does it Work?
The payout sum will depend on the provider, with some companies offering a fixed sum, whilst others provide a percentage of the sum covered by your buildings insurance. Once you make a claim, your insurance company will need to provide alternative accommodation to allow you and your family to carry on living without any significant changes to schedule and location.
Therefore, your commute to work, school run, and other activities won’t change due to the incident. You should note that some insurance companies set a time limit on paying for alternative accommodation.
In instances where an incident occurs at a property next to yours, which leaves you unable to enter your own home, you might still be able to make a claim. Also, if you can stay in your home safely but can’t use the kitchen facilities, your insurance should cover the cost of takeaway until repairs are complete.
What Defines an Uninhabitable Property?
You might be thinking, what defines an uninhabitable home, and when should I submit a claim. Generally, for a home to be classified as uninhabitable, it needs to have apparent structural problems that pose a risk to your safety and issues that stop you from having access to essential needs.
These include:
Running water
Sanitation
Heating
Electricity
If your property fits any of these categories, you should consider contacting your insurance provider to submit a claim. To verify this, the insurance company will likely send an inspector to survey your property and check whether it’s, in fact, uninhabitable.
How Does it Affect Landlords?
You should ensure that your landlord insurance covers alternative accommodation if there’s an incident and your tenants are left without a home. This should only apply if the tenancy agreement stipulates that you are liable to provide temporary accommodation in the event of an incident.
What Type of Alternative Accommodation is Provided?
The type of accommodation you’ll receive will depend on the length needed and the specific contract you have with the insurance provider. If it’s temporary accommodation, you’ll likely be put up in a hotel or B&B. However, if you need accommodation for a considerable amount of time, such as months and years, your insurance provider will likely opt to rent another property.
If you have to rent a property, the standard will usually be like-for-like to your existing house. In the case that expenses increase, the insurance policy should also cover the difference.
Do I Need Alternative Accommodation Insurance?
In general, it’s always better to be safe than sorry. An insurance policy will give you peace of mind and provide a layer of protection should the unthinkable happen. If you have a large family, it could be costly to pay for temporary accommodation, especially if your property requires significant work. This is usually the case after a devastating fire.
What’s the Cost of Alternative Accommodation Insurance?
The cost of adding this policy to your main cover will depend on various factors, such as the value of your home. Therefore, you should contact your insurance provider and talk through your options to get an exact quote. They’ll be able to give you a realistic cost figure.
What to look out for when purchasing alternative accommodation insurance
As with taking out any insurance policy, you need to ensure that you go through all the details with your insurance provider. This will allow you to check that everything you want to be covered is in the policy and that you are only paying for what you want instead of overspending on insurance coverage that you don’t need.
Learn more about Landlord Insurance here.
Other useful links about business insurance:
Tradesperson Insurance
Stock Insurance
Business Health Insurance
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