If your home has been badly damaged by a flood, fire, escape of water or another insured event, you may need somewhere else to live while repairs are completed.
That can raise an important question:
Can your home insurance pay for you to stay in a serviced apartment?
In many cases, the answer is yes — potentially.
Many UK home insurance policies include cover for alternative accommodation when an insured property becomes uninhabitable. Depending on your policy, circumstances and insurer’s approval, that accommodation could potentially be a hotel, rented property or serviced apartment.
In fact, the Financial Ombudsman Service specifically recognises that while a hotel may be suitable for a short displacement, a private rental property or serviced apartment may be more appropriate when somebody needs alternative accommodation for a longer period. Financial Ombudsman Service guidance on alternative accommodation
For households who need temporary accommodation locally, you can also read about our insurance accommodation in Maidstone.
What Is Alternative Accommodation Cover?
Alternative accommodation is designed to help cover the additional cost of living somewhere else when your insured home cannot reasonably be occupied following damage covered by your insurance policy.
For example, you might need to leave your property following:
- a serious escape of water or burst pipe;
- flood damage;
- fire or smoke damage;
- major storm damage;
- structural damage following an insured event;
- extensive drying or decontamination works;
- repairs that leave the property without essential facilities.
The Association of British Insurers explains that buildings insurance can include alternative accommodation when a home is uninhabitable while repairs are being carried out.
Similarly, MoneyHelper’s guidance on buildings insurance describes alternative accommodation as cover for the cost of staying somewhere else, such as a hotel or rented property, while your home is repaired.
The precise amount available, how long cover lasts and what type of accommodation can be used will depend on the wording and limits of your individual insurance policy.
Can a Serviced Apartment Count as Alternative Accommodation?
Yes, it can.
A serviced apartment can be particularly appropriate when repairs are likely to take weeks or months rather than just a few days.
The Financial Ombudsman Service makes an important distinction between short and longer stays. It indicates that a hotel or B&B might be reasonable for a few days or a week, while for a longer displacement it may be more appropriate to use private rented accommodation or a serviced apartment. Read the Financial Ombudsman Service guidance
That is significant because some insurance repairs can take considerably longer than homeowners initially expect.
After major water damage, for example, a property may require water extraction, drying, removal of damaged materials, surveys, reinstatement work, decoration and replacement kitchens or bathrooms before it is ready to occupy again.
A serviced apartment can provide a much more practical living environment during that period.
Why Choose a Serviced Apartment Instead of a Hotel?
Hotels are useful for very short stays.
But living in a hotel room for several weeks — particularly with children — can become difficult very quickly.
A serviced apartment typically provides much more of what somebody would normally expect from their own home, including:
- separate bedrooms;
- private living space;
- a fully equipped kitchen;
- dining facilities;
- washing and laundry facilities;
- Wi-Fi;
- private bathrooms;
- parking;
- more space for possessions;
- greater privacy.
Having access to a proper kitchen can be especially important during a long insurance stay.
Without one, families may find themselves relying on restaurants, takeaways or ready-made food every day. Aside from the inconvenience, that can create significant additional living costs.
A serviced apartment therefore allows people to maintain a much more normal routine while their home is being repaired.
What Does an Insurer Consider When Choosing Alternative Accommodation?
Cost is important, but it isn’t necessarily the only consideration.
The Financial Ombudsman Service says that when considering whether alternative accommodation is appropriate, insurers may need to take account of factors including:
- distance from work;
- distance from children’s schools;
- proximity to family and friends;
- the number of bedrooms required;
- disabilities or medical requirements;
- whether accommodation needs to accept pets.
Financial Ombudsman Service: flood damage and alternative accommodation
This is particularly relevant for families.
Moving somebody into a cheaper property many miles from their normal home may not necessarily provide a reasonable solution if it creates significant disruption to schooling, work, childcare or other commitments.
How Long Will Home Insurance Pay for Temporary Accommodation?
There is no universal time limit because insurance policies differ.
The Financial Ombudsman Service says it would generally expect reasonable alternative accommodation costs to continue until the insured property becomes habitable or safe again, subject to the limits contained within the policy. Financial Ombudsman Service guidance
That does not necessarily mean until every last piece of decorative work has been completed.
It means there needs to be a reasonable assessment of when the home is safe and suitable for the household to return.
Some claims may therefore require accommodation for only a few days.
Others can require several weeks or months.
This is one of the reasons serviced apartments can work particularly well for insurance accommodation: they bridge the gap between a short hotel stay and taking a conventional residential tenancy.
What Happens If Repairs Take Longer Than Expected?
Insurance repair timescales can change.
Once work begins, contractors may discover additional damage. A property may take longer to dry than anticipated, specialist materials may need to be ordered, or further building work may become necessary.
If your existing alternative accommodation is due to end but your home is still uninhabitable, you should discuss the situation with your insurer, loss adjuster or claims handler.
Where the policy continues to provide cover and the insurer approves the extension, a serviced apartment stay may potentially be extended.
At St Andrew’s Apartments, we understand that insurance repair dates can move. Where availability allows, longer bookings can therefore be extended if repairs take more time than originally anticipated.
Will My Insurer Pay St Andrew’s Apartments Directly?
The precise arrangement will depend on the insurance claim.
Alternative accommodation can be organised in several ways.
In some cases, the insurer, loss adjuster, relocation provider or accommodation company may organise the property.
In others, the policyholder may be asked to identify suitable accommodation and obtain approval before booking.
You may therefore be asked to provide information including:
- the accommodation address;
- number of bedrooms;
- number of occupants;
- required dates;
- expected duration;
- nightly, weekly or monthly cost;
- parking requirements;
- any specific family requirements.
If you are arranging accommodation yourself, it is sensible to obtain approval from your insurer or claims handler before committing to a substantial booking.
What About Additional Living Expenses?
Being forced from your home can generate other costs as well as accommodation.
For example, temporary accommodation could result in additional spending on food, laundry, commuting, school travel or pet care.
The Financial Ombudsman Service refers to these types of additional expenses as a possible disturbance allowance and says reasonable additional costs can potentially include food, laundry, travel and rehousing pets. Financial Ombudsman guidance on settling home insurance claims
Again, whether particular costs are covered will depend on the circumstances and the policy.
Keeping evidence of additional expenditure can therefore be useful during an insurance claim.
Serviced Apartments for Insurance Claims in Maidstone
If your property is in Maidstone or the surrounding area and you need somewhere to live while repairs are completed, St Andrew’s Apartments offers furnished accommodation suitable for stays of several weeks or months.
Our apartments include:
- two bedrooms;
- two bathrooms;
- fully equipped kitchens;
- separate living and dining areas;
- laundry facilities;
- ultra-fast Wi-Fi;
- allocated parking;
- flexible stays where availability allows.
This can provide a much more normal home environment than living from suitcases in a hotel room throughout an extended insurance claim.
We welcome enquiries from homeowners and tenants as well as insurance companies, loss adjusters, relocation providers and claims-management companies.
You can find full details on our Insurance Accommodation in Maidstone page.
Frequently Asked Questions
Does every home insurance policy include alternative accommodation?
No. Cover varies between policies. Check your policy schedule and wording or speak directly to your insurer or broker.
Does my house have to be completely destroyed before insurance will pay?
No. A property may be considered unsuitable to occupy even when most of the building is still standing. For example, extensive water damage, the loss of essential kitchen or bathroom facilities or safety issues during repair works may make alternative accommodation necessary.
Can insurance pay for a serviced apartment for several months?
Potentially, yes. If your home remains uninhabitable and your policy provides sufficient alternative accommodation cover, longer stays may be approved. The insurer will consider the circumstances, cost and policy limits.
Is a serviced apartment better than a hotel for an insurance stay?
For a few nights, a hotel can be perfectly suitable. For several weeks or months, many households prefer the additional bedrooms, kitchen, laundry facilities, living areas and privacy available in a serviced apartment.
Should I book accommodation before speaking to my insurer?
It is generally advisable to speak to your insurer, loss adjuster or claims handler first and obtain approval before committing to significant accommodation costs.
Need Insurance Accommodation in Maidstone?
If a flood, fire, escape of water or other insured event has made your home temporarily uninhabitable, we may be able to provide a comfortable place to live while repairs are completed.
St Andrew’s Apartments provides furnished, self-contained accommodation designed for short, medium and extended insurance stays in Maidstone.
Whether you expect to need accommodation for several weeks or several months, contact us with your dates, number of guests and expected length of stay.
Find out more about our insurance accommodation in Maidstone.
Please note: insurance policies and claims vary. St Andrew’s Apartments cannot determine whether your accommodation costs will be covered. Always confirm eligibility, costs and booking arrangements with your insurer, broker, loss adjuster or claims handler.