Alternative Accommodation Cover What It Is, What It Pays, and What to Do When You Need It
A fire. A flood. A burst pipe at midnight. Suddenly your home is not safe to live in. Where do you go tonight? Who pays for it? That is exactly what alternative accommodation cover is for.
- Hotel or rental while repairs take place
- Like-for-like accommodation near work & school
- Storage, pet boarding & disturbance costs
AccommodationWhat Is Alternative Accommodation Cover?
It is the part of your home insurance that pays for you to live somewhere else while your property is being repaired.
Defaqto data shows that all 237 home insurance policies surveyed include alternative accommodation cover as standard. Most people already have it. Many do not know how it works until they need it.
What Does It Cover?
Your insurer pays for a temporary place to stay — a hotel for a short repair, or a rental property if you will be out for months. Accommodation should be like-for-like, in an area that lets you get to work and the children to school.
Hotel or rentaltemporary place to stay
Storage costsbelongings you cannot take
Kennel & catterypet boarding fees
Disturbance allowancemeals, travel & laundry — keep receipts
- Luxury five-star hotels — and properties much larger than your own home
- Unapproved bookings — any costs arranged without your insurer's written approval
How Much Are You Covered For?
Most policies cover between £25,000 and £50,000 for alternative accommodation. Some use a percentage of your sum insured instead.
| Example | Calculation | Limit |
|---|---|---|
| Buildings sum £200,000 at 20% | £200,000 × 20% | £40,000 |
| Contents sum £50,000 at 20% | £50,000 × 20% | £10,000 |
| Typical fixed limit | Policy wording | £25k – £50k |
| Cover period | Most policies | 12 – 24 months |
Always check your specific limit before you need it. If you live in a high-cost area, a lower limit may not stretch far enough. If repairs run longer, speak to your insurer about an extension.
What Does Uninhabitable Actually Mean?
Your insurer sends a loss adjuster to assess the property. They decide if it qualifies as uninhabitable. Your home is usually classed as uninhabitable when:
No running waterkitchen or bathroom supply cut off
No electricityproperty cannot be safely occupied
No kitchen or bathroomno functioning facilities
Structurally unsafecannot safely occupy the property
Landlords, Know Your Legal Position
Private landlords are not legally required to provide alternative accommodation to tenants. However, if your tenancy agreement includes that commitment, you must honour it.
Tenancy agreement check
If rehousing tenants is in the agreement, your landlord insurance should include alternative accommodation cover. Without it, you pay out of pocket.
Loss of rent vs accommodation
Most landlord policies will not pay both loss of rent and alternative accommodation under the same claim. If your agreement does not oblige you to rehouse tenants, loss of rent insurance covers the income shortfall instead.
How to Make a Claim
Act the same day. Do not book accommodation yourself first.
Call your insurer
Report damage the same day it occurs.
Loss adjuster visit
They assess damage and confirm if uninhabitable.
Get approval
Insurer arranges or approves accommodation.
Keep receipts
Save every receipt throughout the entire period.
Need longer?
Contact your insurer before the policy period ends.
Frequently Asked Questions
Yes. Defaqto data shows 99% of contents insurance policies include alternative accommodation cover. It is typically used for storage costs or to top up buildings cover.
You can make a request. Your insurer must approve it. Do not book anything without written agreement first.
Only if it is written into your tenancy agreement. It is not a legal requirement for private landlords in England and Wales.
Most policies cover 12 to 24 months. Check your specific limit. If repairs overrun, negotiate with your insurer before the limit expires.
Yes, but check your unoccupied property clause. Most standard policies only cover empty properties for 30 to 60 days.