Does my home insurance cover alternative accommodation?

Key takeaways

• Alternative accommodation covers the cost of temporary accommodation if your house becomes uninhabitable after an insured event

• You are typically housed within a similar property in your local area to minimise disruptions

• Policies usually have limits on how much they will pay and how long cover lasts, so check whether your cover is enough for your household, pets and location

What is alternative accommodation insurance?

Alternative accommodation insurance covers the cost of temporary accommodation if your house becomes unsafe or unsuitable for you to live in (uninhabitable), usually due to an insured event such as a flood, fire or subsidence.

Does my home insurance cover alternative accommodation?

Many buildings or combined home insurance policies include alternative accommodation cover as standard but you should check the terms of your policy to be sure.

You should also check how much cover you have. Home insurers usually calculate this in two ways:

• Maximum claim limit: A set monetary amount your insurer will go up to for emergency living costs

• A percentage of your buildings sum insured: For example, if your total buildings sum insured is £300,000 and your insurer will provide alternative accommodation cover at 20% of this figure, you would get up to £60,000

The amount of cover is particularly important if you have:

• A large household

• Pets

• Accessibility needs

• A home in an expensive rental area

• A listed building or a non-standard construction

💡 Top tip: If you just have contents insurance rather than buildings insurance or a combined policy you may not have alternative accommodation cover or, if you do, the limit may be much lower. For example, a buildings insurance policy might have a limit of up to £100,000 for alternative accommodation and a contents insurance policy might go up to £10,000.

Which insured events will I be offered alternative accommodation for?

Depending on the extent of the damage, you may be offered alternative accommodation for:

• Fire damage

• Flood damage

• Storm damage

• Burglary and vandalism

• Escape of water from burst pipes

• Damage from subsidence or heave

You’ll need to check your policy documents for the exact cover, limits and exclusions.

How do insurers decide my home is uninhabitable?

Uninhabitable means that your home is either:

• Structurally damaged so that is it unsafe to live in

• Without everyday essentials such as: Running water; heating (especially in winter); electricity; a toilet; a shower/bath; sleeping areas

Insurance companies tend to define uninhabitable conditions slightly differently, so it is worth checking your policy.

If your home suffers major damage, your insurer will often send a loss adjuster to assess whether it is uninhabitable.

What should I do if my home becomes uninhabitable?

You should contact your insurer if your home becomes uninhabitable; don’t book or pay for alternative accommodation yourself without their approval as you may not be able to claim the money back.

What type of accommodation will I be offered?

Alternative accommodation is usually based on like-for-like cover, so your insurer will try to make sure you are re-housed in a similar property and within the local area. The aim is to enable your normal routine, such as commuting to work or taking the children to school, without causing more disruption than is necessary.

If a like-for-like property isn’t immediately available, or you only need to stay a short while because the home repairs will be quick, you may be booked into a hotel or bed and breakfast instead. Speak to your insurer before booking accommodation, as choosing your own hotel or rental without approval could affect your claim.

Can I stay with family or friends?

Yes, some insurers might still let you make a claim if you choose to stay with family or friends while your house is being repaired. The amount may cover extra costs incurred such as food and utility bills.

How long will alternative accommodation last?

Alternative accommodation usually lasts until your home is safe to live in again, not necessarily until every cosmetic repair is finished. Your insurer may stop paying once essential facilities are restored or the property is no longer classed as uninhabitable. Cover will also stop if you reach your policy limit.

How much could alternative accommodation cost?

Temporary accommodation can be expensive, especially if you need to stay near work, school or family commitments. ONS figures show the average UK monthly private rent was £1,393, in July 2026, while a home with four bedrooms or more averaged £2,067 a month. That means even a few months in a similar rental property could quickly add up.

What costs can alternative accommodation cover?

Depending on your policy, your insurer may cover the following:

• Hotel, B&B, serviced apartment or temporary rental costs

• Reasonable extra travel costs if you’re moved further away

• Kennels or cattery fees if pets can’t stay with you

• Storage costs for belongings

• Extra food costs if you can stay home but can’t use your kitchen

• Temporary accommodation for family members who normally live with you

Are pets covered under alternative accommodation insurance?

Yes, your insurer might let you request pet-friendly alternative accommodation. If not, some policies cover the cost of putting pets, such as dogs or cats, into kennels or catteries while your home is being repaired.

You should also check your pet insurance policy to see if alternative accommodation is covered.

Will storage costs be covered for my belongings?

Yes, if you have contents insurance (whether standalone or as part of a combined insurance policy), storage costs will typically be covered. The level of cover can vary though so check the small print.

Who pays for alternative accommodation?

In most cases, if your home becomes uninhabitable due to an insured event, your home insurance policy will cover the cost of alternative accommodation. This is often included as standard, but it's always best to check your policy terms and conditions.

You may be required to book accommodation yourself, in which case you should be reimbursed by your insurer upon your claim being accepted. However, it's important not to book alternative accommodation until you've confirmed with your insurer that it will be covered.

Does my landlord have to provide alternative accommodation?

Whether your private landlord has to provide alternative accommodation depends on the terms of your tenancy agreement or if they were responsible for the damage that has made your home uninhabitable. However, you may not have to pay rent while you can’t live there.

Your landlord may have landlord insurance to cover loss of rent or funding temporary homes for tenants.

If you rent a council house that becomes uninhabitable, your local authority should provide alternative accommodation.

💡 Top tip: Make sure you understand your rights under the Homes (Fitness for Human Habitation) Act.

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