Does home insurance cover alternative accommodation?

Yes, most home and contents insurance policies in Australia include cover for alternative or temporary accommodation, but it only applies under specific insured events. This benefit is triggered when your home becomes uninhabitable due to an insured event listed in your Product Disclosure Statement, such as fire, storm, flood, cyclone, burglary damage, or burst water pipes. It does not cover you if you choose to move out for renovations, pest treatment, or because you are unhappy with the property. If covered, the insurer will pay reasonable costs for temporary accommodation for you, your family and sometimes your pets, for a set time limit or up to a monetary cap. Common limits in Australia are 12 months and 10-20% of your sum insured, for example $20,000 to $50,000, or up to $500-$800 per week. Some premium policies offer unlimited temporary accommodation. It typically covers rent for a comparable property, hotel costs, and sometimes extra costs like emergency transport and storage of contents. For landlords, this is often called loss of rent or rent default cover, which is separate. For owner-occupiers and renters with contents insurance, you must provide evidence that the home is unfit to live in and keep all receipts, as insurers reimburse rather than pay upfront.