What types of temporary accommodation does home insurance cover

Home insurance generally covers the reasonable cost of suitable temporary accommodation such as hotels, motels, serviced apartments or a rental property. The type of accommodation depends on your policy limits and what your insurer deems appropriate for your situation. Always check with your insurer for specific details on what is covered.

Can I choose where I stay for temporary accommodation

Many insurers will work with you to arrange suitable temporary accommodation directly or may offer a cash payout for you to arrange it yourself. While you often have some input, the final choice may need to meet your insurer's criteria for reasonable cost and suitability. It is best to discuss your preferences and options with your insurer when making a claim.

What documentation do I need to claim temporary accommodation

To claim temporary accommodation, you will typically need to provide evidence of the insured event that made your home uninhabitable. This often includes photographs, damage reports and receipts for your temporary living expenses. Your insurer will guide you on the specific documentation required for your claim.

Is the temporary accommodation payout taxable

Generally, insurance payouts that reimburse you for expenses like temporary accommodation are not considered taxable income in Australia. However, tax implications can vary depending on your individual circumstances. It is always advisable to consult a qualified tax professional for personalised advice.

Can I still receive a payout if I stay with family or friends

If you choose to stay with family or friends and do not incur costs for temporary accommodation, your insurer may not provide a payout for accommodation expenses. Temporary accommodation cover is primarily designed to reimburse you for necessary additional living expenses incurred because your home is uninhabitable. Some policies may offer a goodwill payment in certain situations but this is not standard.

What happens if my home repairs take longer than the covered temporary accommodation period

If your home repairs or rebuild take longer than the maximum period covered by your policy, you will generally be responsible for any additional temporary accommodation costs beyond that timeframe. It is important to monitor the repair progress and discuss any potential delays with your insurer well in advance.

What is the difference between temporary accommodation and loss of rent for landlords

Temporary accommodation cover is for owner occupiers whose primary residence becomes uninhabitable due to an insured event. It covers your additional living expenses. Loss of rent cover is for landlords and compensates them for rental income lost when their investment property becomes unrentable due to an insured event. These are typically separate types of cover in a landlord insurance policy.

How is the temporary accommodation payout amount calculated

The payout amount for temporary accommodation can be calculated in a few ways depending on your insurer and policy. Some insurers base the amount on the weekly rentable value of your home. Others pay up to a percentage of your sum insured, commonly 10%, although some, like Youi, pay up to 12% of the building's sum insured. There is usually a maximum payout period often 12 months.