Temporary accommodation

If your home is severely damaged, you may need to live somewhere else for a period of time. Temporary accommodation cover is generally included in house and contents policies, but it has some important features to be aware of. 

What is temporary accommodation cover?

Temporary accommodation covers the reasonable cost for you to live somewhere else after an unexpected event. This could be because your house is uninhabitable, or if you cannot stay at the house while repairs are being completed. 

Most house and contents insurance policies will provide cover for temporary accommodation, but the scope and amount of cover will differ.

Why is it an issue for consumers?

Following significant events like natural disasters, impacted consumers may require accommodation for a long period of time. 

While temporary accommodation benefits can support consumers following an unexpected event, they often contain limits on the amount payable and/or timeframe. This can mean the benefit ends before an insured’s house can be repaired or rebuilt. 

It’s important to understand the cover available to you and other accommodation support, if needed. 

Insurance dispute over flood repairs

Real life examples

Charlie’s* accommodation disappointment

Charlie’s rental house was insured as a tenanted property with tenants living in the house. The house was badly damaged after the 2011 Canterbury Earthquake and needed to be rebuilt. After the earthquake, the house was not tenanted and Charlie moved in following temporary repairs.

In 2013, the insurer confirmed the arrangements had been made to rebuild the house. Charlie applied for the temporary accommodation benefit while the rebuild took place. The insurer declined this part of Charlie’s claim. The temporary accommodation benefit was not available because, at the time of the earthquake, the policy was insured as a tenanted property. Charlie wasn’t living at the house at the time of the damage so he was not entitled to the temporary accommodation benefit. 

 

Amy’s* accommodation top-up request

Amy’s house was damaged in the 2011 Canterbury Earthquake. The insurer completed repairs, but they were defective and needed to be fixed. During the remediation repairs, the insurer paid Amy the remaining amount of her temporary accommodation benefit, being $17,200 ($7,800 had already been paid during the initial repairs). 

Amy believed the insurer should cover all of her temporary accommodation expenses due to the substandard repairs. Following the complaint, the insurer offered to pay the full temporary accommodation benefit of $25,000. The IFSO Scheme believed this was a fair and reasonable outcome. 

*Names have been changed

Things to know about temporary accommodation cover

Debug listType:
craft\fields\data\SingleOptionFieldData {#25373
  +label: "Numbered"
  +value: "is-numbered"
  +selected: true
  +valid: true
  -_options: array:3 [
    0 => craft\fields\data\OptionData {#25369
      +label: "Numbered"
      +value: "is-numbered"
      +selected: true
      +valid: true
    }
    1 => craft\fields\data\OptionData {#25371
      +label: "Bullet"
      +value: "is-bullet"
      +selected: false
      +valid: true
    }
    2 => craft\fields\data\OptionData {#25370
      +label: "Check"
      +value: "is-check"
      +selected: false
      +valid: true
    }
  ]
}
Debug listType value: is-numbered
  1. The features of temporary accommodation cover differ between insurance policies

    Each policy will have its own wording that outlines the cover available to you. Read your policy carefully to understand the cover. 

    Some policies may provide temporary accommodation cover until a certain monetary limit is reached. In other cases, cover is provided up to a maximum amount of time. 

    Generally, temporary accommodation cover does not include letting fees, utilities, meals, phone or internet costs. 

    It’s important you read your policy to understand the cover that applies to you. 

     

  2. Your contents policy may provide temporary accommodation cover if you are renting

    Most contents insurance policies will include temporary accommodation cover as part of the cover provided to you. Check your policy wording to understand when you are eligible for this benefit.

    Your policy may require you to continue to pay your normal rent payment towards the temporary accommodation and the insurer will pay the difference. 

  3. Moving or storage costs are usually included

    Policies will generally include moving and storage costs as part of the temporary accommodation cover. Check your policy for more information. 

  4. Temporary accommodation for your pets is generally included

    Temporary accommodation for your pets is generally included 

    Your pets are part of your family. Temporary accommodation benefits will generally include kennel or cattery fees for your pets, if they cannot stay with you. 

    Your policy wording will outline if this is included in your cover. 

  5. How insurers assess if a house is uninhabitable

    Your policy wording may define when your house will be assessed as uninhabitable. Check your policy wording for details and talk to your insurer if you would like further information. 

    When assessing the house, there are a range of factors that can be relevant to the insurer, including:

    • If there is any structural damage
    • Whether the kitchen and bathroom are functional
    • If the house is secure and weathertight
    • Any government or local authority instructions about your house, including instructions to vacate.
  6. Temporary accommodation cover after natural disasters

    A natural disaster or catastrophe is a significant event where a large number of people require insurance support and repairs at the same time. This can mean people need temporary accommodation for a longer period than their insurance policy provides for. Insurers are only required to provide you with the cover outlined in your policy, but other support may be available (see below). 

  7. Other accommodation support may be available

    If you do not have temporary accommodation insurance cover or require emergency accommodation, there are organisations that can support you.

    The Temporary Accommodation Service assists households to find safe temporary accommodation after a natural disaster while their home is repaired or rebuilt. More information is available here

    WINZ provides Temporary Accommodation Assistance following a severe weather event. This support can apply when your insurance temporary accommodation benefit ends. More information is available here

    WINZ also provides emergency accommodation support to individuals who do not have anywhere to stay and cannot afford to pay for short-term accommodation. Contact WINZ for more information here

Tips to avoid problems

Read your policy

Read your insurance policy to understand when temporary accommodation will be provided, and the policy limits.   

Talk to your insurer before incurring any temporary accommodation costs

Your insurer must approve your temporary accommodation costs and will have a process of how this works. Talk to your insurer about your accommodation situation before you incur any costs for which you will claim. 

Obtain your own professional opinions if you believe your house is habitable

If you disagree with your insurer’s assessment that your house is uninhabitable, you can obtain your own reports from qualified professionals, at your own cost. The insurer will review these as part of its claim assessment. 

If you are unhappy with the claim decision, you can make a complaint through the insurer’s internal complaints process.