If my let property is damaged, will you cover the cost of alternative accommodation for my tenant?

Posted: 4th Jun 2014

In principle, yes but there are some important points to understand.

If your property is severely damaged by a condition covered through your landlords’ insurance policy, you may find that you have three immediate problems arising as a result:

  • you may need to put your tenants into emergency accommodation while you deal with the consequences of the problem;
  • you might find yourself, as a result, also seriously out of pocket due to a loss of rental income;
  • you will have all of the costs associated with putting the problem right.

Subject to the specific conditions of your policy, it may be able to help you in all three areas.

Of course, the concept of reasonableness will exist.

That might cover situations where, for example, you had decided to relocate your tenants to a very expensive form of alternative accommodation that was not commensurate with the nature of the property they were occupying prior to the problem arising.

The reality of life is that each situation of the above type is unique and with its own perhaps never to be repeated again circumstances.

Your insurance provider will typically work with you quickly and efficiently to try and reach a solution as fast as possible to both protect the integrity of the accommodation of your tenants and your financial interests as the policyholder.

In any situation where such claims were likely to be forthcoming, it is always a good idea to speak to your insurance provider in advance and work in partnership with them to find a solution. This is preferable to simply telling them of decisions and actions after they have already taken place.