Will my insurance provide alternative accommodation to my tenant’s if anything were to happen?
Most insurers will offer to pay to rehouse your tenants after an insured accident such as a fire or flood occurs and makes the building uninhabitable. (It is important to understand which types of accidents are covered as there will be exclusions.) This usually requires ‘alternative accommodation cover’, which will pay for the cost of another place for your tenants to live whilst the repairs are on going.
However you may not need to provide alternative accommodation. You only need this type of insurance if you have specified with your tenants that you will provide alternative accommodation in the instance yours became uninhabitable. This will be written in the tenancy agreement. The usual agreement is just that the tenants do not have to pay rent for the uninhabitable property but will have to find themselves somewhere else to live temporarily.
It is important to check your clause with your tenants and make sure both parties are aware of the procedure.
Homeowners, tenants, holiday homeowners and landlords may want to consider looking into alternative accommodation cover as it is not just for landlords. The cover can be added as an addition to a landlord cover policy or to standard home insurance.