If something happens to your rental property and your tenants can’t live there, you might have to make sure they’ve got a roof over their head while you fix the problem. If your tenants move on before they can move back in, you might need financial support for your business while the repairs are finished. Our alternative accommodation cover or loss of rent insurance makes sure you’re covered.
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Our standard alternative accommodation cover means that in the event of damage to your property making it uninhabitable we’ll help you find your tenants a B&B or hotel to live in, and pay for it, while things are repaired.
If the damage to your property is going to take a long time to fix, your tenants are likely to move on rather than stay in temporary accommodation. That’s when your alternative accommodation turns into loss of rent cover. This means we’ll start paying you your normal rental income.
With alternative accommodation or loss of rent cover, you get up to 12 months protection, or up to 20% of your building sum insured figure, paying for B&B costs or paying out your lost rental income. You can choose to extend the cover to 24 months, or 30% of your building sum insured figure.
For more information please take a look at the full loss of rent insurance policy documents - which show exactly what you’ll be covered for.
Loss of rent insurance is cover designed for landlords so that if something happens to a property and your insured for it, you’ll not only get the problem fixed on your insurance, but you’ll also get your rent paid if tenants can’t live there while the problem is being fixed.
You purchase a single policy, which starts off paying for alternative accommodation for tenants who can’t live in your damaged property, and when they move on then starts to pay you for your loss of rent, all until the damage to your property is fixed, or until you reach the end of your policy term or limit of your policy amount.
Alternative accommodation cover will be first, to find your tenants somewhere else to stay immediately and cover the costs of them living there, up to the maximum amount covered in your policy. In many cases, your tenants will be back living in your rental property in a matter of days or weeks.
However in some circumstances your property could be uninhabitable for a much longer period of time, meaning your tenants prefer to find an alternative rental property. Once your tenants have found new rented accommodation and you are no longer their landlord, then alternative accommodation cover stops and your loss of rent insurance protection starts. This covers the rent you are not able to receive while your house can’t be lived in, up to the amount stated in your policy.
Note that alternative accommodation and loss of rent cover do not run at the same time. It’s one or the other as part of the same policy, which runs for 12/24 months or 20/30% of your building sum insured.
Unfortunately we can’t go over your 20/30% or the 12/24 month limit you’ve set. Whichever comes first, once you’ve reached the limit of your policy it can’t be extended.
Yes. When you take your policy out you can choose to extend the amount of time you’ll get loss of rent insurance for, up to 24 months or 30% of your building sum insured figure.
Building sum insured is the amount of money it would cost you to rebuild your property if it was destroyed or badly damaged.
You might find full building costs on your mortgage survey, and there are also useful tools like the BCIS calculator from the Royal Institution of Chartered Surveyors (RCIS) that can help you calculate your building sum insured, which should include the cost of site clearance, design fees, and rebuild costs including materials and labour.
When it comes to Simple’s loss of rent or alternative accommodation insurance, you can go up to 20% of your building sum insured. So if your rebuild value was £100,000, we would pay up to £20,000 in alternative accommodation/loss of rent costs.