What is alternative accommodation in home insurance?

Alternative accommodation is the temporary housing your insurer may pay for if your home becomes uninhabitable due to an insured event, such as fire, flood, or storm damage. It ensures you and your family have somewhere safe to live while repairs take place.

This cover is often included as standard in home insurance policies, but may have limits on the duration or cost. The type of accommodation offered can vary depending on your circumstances and policy terms.

When does alternative accommodation cover apply?

Alternative accommodation cover kicks in when your home becomes unsafe or legally uninhabitable due to an insured event, for example:

• After a major fire, flood, or other insured disaster
• When safety concerns (e.g. structural damage) force you to leave
• If contamination or sanitation issues make the home unfit to live in

What does alternative accommodation cover include?

Your policy may cover a range of costs to keep you housed and supported during repairs, including:

• Hotel stays or short-term rentals
• Additional living expenses, such as travel or meals
• Pet boarding, where specified
• Suitable housing based on your family’s needs

Examples of alternative accommodation

The type of accommodation offered will depend on your policy, your living situation, and how long repairs are expected to take. Here are some common scenarios:

• Emergency hotel bookings: If your home becomes uninhabitable suddenly, for example, due to a fire or burst pipe, your insurer may cover hotel stays while longer-term arrangements are made.
• Short-term rental properties: For longer repairs, you may be placed in a furnished rental property, such as a flat or house, ideally close to your home, work, or children’s school.
• Specialist accommodation: If someone in your household has mobility issues or additional needs, the insurer may provide suitable accommodation with accessibility features.
• Pet-friendly options: If you have pets and your policy covers it, your insurer might help find pet-friendly accommodation or pay for kennel or cattery costs.
• Local alternatives: Where possible, insurers will try to house you locally to minimise disruption to your daily life, including schooling, commuting, and support networks.

While less common, other solutions can be arranged depending on your circumstances. For example, Morgan Clark has helped clients secure a static home placed on-site during major rebuilds – a useful option when space allows and you want to stay close to the property. 

Alternative accommodation: Limits and exclusions

While alternative accommodation cover can be a vital safety net, it’s important to understand where the limits lie and what may not be included.

• Cost limits: Most policies set a maximum amount they’ll pay, either as a total sum or per week. If your chosen accommodation exceeds this, you may need to cover the difference yourself.
• Time limits: Cover is usually provided for a set period, such as 12 months. If repairs overrun or delays occur, the insurer may not extend support beyond the policy’s stated timeframe.
• Level of accommodation: Insurers typically offer a “like-for-like” standard. Requests for luxury properties, larger homes, or upgrades may not be covered in full.
• Event exclusions: If the damage isn’t caused by an insured event, for example, long-term wear and tear, poor maintenance, or gradual deterioration, alternative accommodation may not be offered at all.
• Uninhabitable threshold: The property must be genuinely uninhabitable. Minor inconvenience or cosmetic damage (e.g. a broken boiler in summer) may not qualify.
• Failure to maintain the property: If the insurer believes the damage could have been prevented, for instance, by fixing a known roof leak, they may reject the claim entirely, including accommodation costs.

FAQ’s

Do all home insurance policies include alternative accommodation cover?

Not all policies include alternative accommodation cover as standard. While many comprehensive home insurance policies do offer alternative accommodation cover, some budget or basic policies may exclude it or offer it only as an optional extra. Always check your policy wording or speak to your insurer to confirm what is included.

How long can I stay in temporary accommodation under my policy?

The duration of cover varies by insurer. Most policies provide alternative accommodation for up to 12 months, or until your home is deemed habitable again – whichever comes first. However, there is usually a monetary limit on the total amount the insurer will pay, so the length of your stay could be affected by both cost and time caps.

Can I choose where I stay, or does the insurer decide?

Typically, the insurer will take the lead in arranging alternative accommodation within the limits of your policy, but there may be opportunities to choose from a few options – especially if location, schools, or other specific needs are a factor.

Does Alternative Accommodation cover include extra travel or pet boarding costs?

Many alternative accommodation policies cover reasonable additional expenses associated with temporary living arrangements, such as:

– Increased travel costs (e.g., commuting to work or school from the new location)
– Pet boarding or finding pet-friendly accommodation

These inclusions depend on your specific policy terms, so it’s important to confirm whether these additional costs are covered and up to what limit.

What happens if my repairs take longer than expected?

If the repair work takes longer than anticipated, and you reach your policy’s time or cost limit, your insurer may stop funding the alternative accommodation. In some cases, they may agree to extend support, but this is at their discretion. Working with a Loss Assessor can help ensure that delays are documented and any extension requests are handled professionally to maximise your entitlement.

Is alternative accommodation available for tenants as well as homeowners?

Yes. If you’re a tenant, your contents insurance may include alternative accommodation if the property becomes uninhabitable due to an insured event. For landlords, their buildings insurance may cover the cost of rehousing tenants during repairs. Both parties should check their respective policies, as responsibilities and coverage can vary.

Re-build costs