Does 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 can cover your temporary accommodation if your house becomes uninhabitable, usually due to a flood, fire or subsidence. The cover should run until the property is repaired, so you are not left homeless.

Alternative accommodation cover is included as standard on many buildings or combined home insurance policies (it doesn’t usually come with just contents insurance), but you should check the terms to be sure.

You should also check what limits apply – there is normally a maximum claim amount set for emergency living costs and you want to be sure that this will meet your requirements.

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.

What is defined as uninhabitable?

The home either needs to be structurally damaged so that is it unsafe to live in, or must be without everyday essentials such as:

• Running water

• Heating (especially in winter)

• Electricity

• Toilet, shower/bath

• Sleeping facilities

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

Tenants and landlords should also be aware that in March 2019 a new law came into force to make sure that rented houses and flats are always ‘fit for human habitation.’ The government website explains more.

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.

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 £1,377 in March 2026, while four-bedroom homes averaged £2,049 a month in December 2025. That means even a few months in a similar rental property could quickly add up.

Some home insurance policies offer a fixed alternative accommodation limit, while others base it on a percentage of your buildings sum insured, such as 20%. Always check the limit, especially if you have a large household, pets, accessibility needs or live in an expensive rental area.

What is the process for getting alternative accommodation?

It’s not as simple as just picking where you want to stay and sending the bill to your insurer. If you do this, it could invalidate your claim.

Each claim is on a case-by-case basis. Depending on what the loss adjustor finds, it may be that there is less upheaval to stay in the property while the repairs are taking place.

For example, if your home is fine in most respects but without a functioning kitchen, your insurance might cover the costs of eating out or buying takeaway food.

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?

Your pets may be able to move with you if the new accommodation is pet-friendly. 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?

Your alternative accommodation may not have the space for all your possessions, so check whether your insurer will also cover storage costs.

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?

If you rent, check your tenancy agreement and speak to your landlord. If the property becomes uninhabitable, you may not have to pay rent while you can’t live there, or your landlord may need to arrange or contribute to alternative accommodation depending on your agreement and the circumstances.

Landlord may want to consider landlord insurance to cover loss of rent or funding temporary homes for tenants.

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