Alternative accommodation insurance for landlords

Alternative accommodation insurance for landlords can cover the cost of providing tenants with temporary accommodation if their rented property is left uninhabitable due to an insured event, such as a fire or flood.

In the event of an emergency that leaves a rental property too damaged or unsafe for tenants to live in, a landlord may be required to provide alternative accommodation for tenants while the property is being repaired or made habitable and safe again.

Alternative accommodation cover is designed to help protect a landlord in such a situation.

In the event of an unforeseen incident such as a fire, flood or storm, a landlord may be faced with not only covering the cost of repairs or rebuilding but, if the damage is severe and the property is uninhabitable, you may need to pay to provide somewhere else for your tenants to stay.

In such situations, alternative accommodation insurance can help cover the cost of providing similar temporary accommodation for your tenants – you may even need to find temporary accommodation for your tenants yourself.

Alternative accommodation insurance can be available as part of a comprehensive landlord insurance policy, sometimes alongside loss of rent insurance, as it is with ours.

A landlord must legally provide a home that is fit for human habitation. The Housing  Act 1957 lists conditions that would classify a property as uninhabitable.

An uninhabitable property is one that is not fit or safe for occupancy due to various reasons, such as damage, health hazards, or legal violations, and does not meet minimum habitability standards set by health and safety regulations.

Some common reasons that may render a property uninhabitable include:

• Structural damage – this can include damage from fires, floods or other natural disasters that make the property unsafe or unstable.

• Health hazards – including mould, asbestos, lead paint, or other toxic substances that pose a health risk to tenants.

• No electricity, running water, or heating.

• Unsafe gas or electricity such as poor ventilation, improper wiring or lack of smoke detectors.

This type of insurance offers peace of mind by helping to ensure that tenants have a place to stay in the event of an emergency, and landlords are not left with the financial burden of providing alternative accommodation.

Alternative accommodation insurance can provide valuable protection for landlords, helping to ensure that they can continue to provide a safe and comfortable living environment for their tenants, even in the event of an unexpected emergency.

Whether you need to rehome your tenants or not will depend on the severity of the incident and the extent of the damage to the property, as well as the terms in your tenancy agreement.

Some tenancy agreements state that providing temporary accommodation to a tenant during extensive repairs is the landlord’s responsibility.

Check your tenancy agreement carefully to ensure you are properly covered and have appropriate protection in place.

A landlord is usually not required by law to arrange accommodation for their tenant if it is not written in the tenancy agreement, but it is a landlord’s responsibility to provide a safe and comfortable home for their tenants that is free from harm.