What is alternative housing protection? If your home becomes uninhabitable, typically due to a flood, fire, or subsidence, alternative accommodation insurance can cover your temporary housing. The coverage should extend until the home is repaired, preventing you from becoming homeless.
Alternative accommodation cover is a feature of most building insurance policies. It’ll give you somewhere to stay should your house become uninhabitable due to an event like a fire, flood or another emergency.
What does alternative housing cover?
What is alternative housing protection? – Alternative accommodation coverage is included in your homeowner’s insurance. It applies if your residence becomes uninhabitable as a result of: Fire Flooding Subsidence Storm-related destruction Water damage from burst pipes It means that your homeowner’s insurance provider should help you find alternative housing.
- The policy should also cover these expenses so that you are not left homeless while the issue is resolved.
- Many homeowner’s insurance policies include coverage for alternative lodging as a standard feature, but in some cases it must be added separately.
- Make sure you understand what is covered, and check the limits as well.
In the worst-case scenario, you may require alternative housing for an extended period of time. If you reside in a high-risk area, such as near a flood plain or the coast, you may be required to pay a slightly higher premium for alternative accommodation insurance.
- However, not possessing it could be a false economy.
- If you own rental properties, it may be worthwhile to determine whether your landlord insurance policy covers alternative housing.
- Depending on the terms of your contract with your tenants, you may be required to provide them with alternative housing in the event of an emergency.
Therefore, without insurance, it could be expensive.
What is covered by alternative accommodation insurance? – Policies vary in terms of which expenses are covered and how much you are covered for. Nonetheless, as a general rule, if you are offered alternative accommodation coverage, it should be for a comparable property.
If the local cost of living is higher than your normal cost of living, you should be reimbursed the difference. If your home is still inhabitable but you do not have a fully functional kitchen, some insurers may reimburse you for dining out or ordering takeout. You should not be financially responsible for property repairs.
Your insurer should provide assistance in locating professionals, such as contractors, to complete any necessary work. If not, they should provide their own network of frequently employed tradespeople to perform the necessary repairs.
How much do you need to budget for alternative housing?
How much coverage will I have? Again, policies vary, but you can anticipate coverage of approximately 20% of the insured amount for the cost of alternative lodging. Your insurer should also provide guidance on how to locate repair specialists, or they will provide frequent contractors from their own network.