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Does buildings insurance cover alternative accommodation?

Updated: Dec 13, 2024

House with a severely damaged roof, representing the need for alternative accommodation after a property disaster.

When your home becomes uninhabitable due to fire, flood, or another unexpected disaster, finding somewhere else to stay can be really stressful (and expensive!). This is where alternative accommodation insurance comes in handy, providing financial protection if the worst happens. But does your buildings insurance cover this, or do you need a separate policy? In this post, we’ll look at the importance of alternative accommodation cover, discuss the types of accommodation available, and explain how this type of insurance can help cover the cost during emergencies.


Alternative accommodation insurance

What if disaster strikes and your home becomes uninhabitable? A burst pipe floods your living room, or maybe a fire damages your kitchen – suddenly, you need somewhere else to stay, and quickly! This is where alternative accommodation insurance steps in to save the day.


This coverage ensures that if your home is unliveable, your insurance will cover the cost of keeping a roof over your head while your home is rebuilt or repaired. Whether it’s a short-term fix or a long-term stay while your house undergoes more extensive work, having this insurance provides real peace of mind.


Not all home insurance policies include alternative accommodation cover, and many will have limits on the total amount of cover and/or the total number of days your alternative accommodation will be paid for, so it’s important to closely check your policy details. As with any insurance policy, consider shopping around for the best coverage for your needs, at the best price.


Types of alternative accommodation

Young child sitting on a bed, highlighting the need for comfortable alternative accommodation during home repairs.

Once you've got alternative accommodation insurance, you’ll generally have a range of options when your home becomes uninhabitable – whether it’s a rental property, a serviced apartment, or a hotel. If you’ve got pets, look for a policy that covers pet-friendly accommodation. You might also like to ask about whether it covers things like cattery fees or dog kennels for your furry family members.


Loss of rent insurance

Loss of rent insurance is an essential protection for landlords whose rental properties become uninhabitable due to things like fires or floods, or other sudden and unexpected events. This coverage helps maintain rental income during repairs and ensures landlords don’t face financial strain while the property is being restored. For example, if a rental property is structurally damaged and tenants must move out, loss of rent insurance will cover the income shortfall, particularly if that income is crucial for paying the mortgage.


Important note for landlords: Landlord policies will often include loss of rent and alternative accommodation coverage, but usually won’t pay both under the same claim. If you’re not obliged to cover alternative accommodation in the contract with your tenants, loss of rent insurance should cover the lost income during the repairs – this allows your tenants to find their own alternative accommodation.


Building and contents insurance

Building and contents insurance works hand in hand with alternative accommodation insurance. While building insurance covers the structural damage to your home, contents insurance protects your personal belongings. If your home becomes uninhabitable, alternative accommodation insurance ensures you have somewhere to stay while repairs are made, and building and contents insurance covers the cost of repairing or replacing the damaged structure and belongings. Having all three means the ultimate peace of mind.


Claims process for alternative accommodation insurance

Customer service agents ready to assist with claims, including arranging alternative accommodation after a home emergency.

Making a claim for alternative accommodation in the event of a home emergency or unexpected disaster can seem daunting, but understanding the claims process makes it smoother. After your property becomes uninhabitable, you’ll need to notify your insurance company promptly and submit a claim. The insurer may appoint loss adjusters to assess the damage and determine the amount of coverage you’ll receive. It’s important to provide detailed evidence, such as repair estimates and photos of the damage, to support your claim.


To streamline the process, keep thorough records and maintain communication with the insurance provider. This way, they’re always up to date with what’s going on and you’ll know exactly what you’re covered for while you’re looking for alternative accommodation for you and your family.


Cost considerations for alternative accommodation insurance

Like any insurance policy, the cost of your insurance will vary depending on a few factors. When it comes to the cost of alternative accommodation insurance, factors such as the maximum amount covered and the type of accommodation needed will have an impact on the premium. Policies vary, but they generally cover temporary accommodation costs like rental properties or hotel stays for a maximum period of time, such as 30 – 60 days.


Whether or not you need alternative accommodation insurance will depend on your circumstances. Is it just the two of you living in the home, and do you have family nearby who would be happy to put you up for a few days or even weeks, if something went wrong? In that case, you might not need the added coverage of alternative accommodation. On the other hand, if you’ve got a household of five, a menagerie of pets, and a job that requires you to be in the immediate vicinity, you might sleep better at night knowing the cost of alternative accommodation is covered if you’re forced out of home for a while.  


To find affordable coverage, compare policies from different providers and consider bundling with building and contents insurance to save on premiums. Balancing cost and coverage is key to ensuring you’re well protected without overpaying for what you don’t need.


Get a rebuild cost assessment done today

Collage of fire-damaged homes, illustrating the importance of alternative accommodation during home repairs.

Did you know that your insurance payout can be affected by the average clause? That means if you’re underinsured (like 76% of properties in the UK!) you could face a reduction in the overall payout on a claim – including your alternative accommodation claim! That’s why it’s so important to get an accurate rebuild cost assessment done by the experts.


Comprehensive alternative accommodation insurance is vital for protecting your home and ensuring you have somewhere safe to stay during repairs. Make sure your policy covers all necessary expenses and offers sufficient protection (particularly if you’ve had renovations done since you last organised insurance) – and be sure you’ve had an up-to-date rebuild cost assessment done.


Don’t have a current rebuild cost assessment on your property? Put your mind at ease and update your insurance with the super convenient desktop assessment from RebuildCostASSESSMENT.com today.


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Important disclaimer: The information provided here is for general informational purposes only and is not intended as professional advice. While we strive to ensure all information is accurate and up-to-date, the content may not reflect the most current legal or regulatory developments, standards, or practices. No representations or warranties are made (express or implied) about the accuracy of the information provided, and reliance on this information is strictly at your own risk.


We do not offer financial advice and nothing within this content should be construed as such. We recommend consulting with a qualified professional who can provide tailored advice based on your individual circumstances before making any decisions related to insurance.


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