6 Rules For Keeping Safe in Temporary Accommodation During Your Claim

Rule 1: Know what temporary accommodation actually covers

Temporary accommodation is the housing your insurer pays for when your home cannot be safely lived in due to an insured event. It is designed to keep you housed while your claim is assessed, and while repairs or rebuilding take place.

Most policies cover:

• The cost of accommodation itself, such as rent, hotel or serviced apartments
• Additional reasonable and necessary living costs, which may include utilities, connection fees, internet, relocation expenses, and pet boarding if pets cannot stay with you
  
  

Even where some of these costs are not listed word-for-word in the policy, insurers often agree to pay them if they are reasonable and directly linked to your displacement. Always check the PDS, but do not assume silence means exclusion. 

Rule 2: Temporary accommodation usually applies during assessment and repairs

Insurers typically pay for temporary accommodation while your home is:

• Uninhabitable due to an insured event, and
• Being assessed, repaired or rebuilt
  
  

In practice, many insurers also provide accommodation during the claim assessment period, especially where it would be unsafe or unreasonable for you to remain in the home. However, this also means if the insurer considers that: 

• Your home is habitable
• Your home is uninhabitable, but not due to the event that you’re claiming for
• Your home was uninhabitable, but repairs are finished or you’ve been paid enough for the period of repairs
• Your accommodation limit has been reached

… then they may end your accommodation. 

Rule 3: “Uninhabitable” is about safety, not convenience

A home does not need to be a total loss to be uninhabitable. While your policy won’t say this, it is generally considered uninhabitable if it is: 

• Not secure from the elements
• Without essential utilities such as electricity, gas or water
• Affected by contaminants or hazards that pose a health or safety risk, such as significant water damage, mould, or exposed asbestos
  
  

For example, if your home is significantly contaminated with mould after a flood, or you won’t have access to a kitchen during repairs, it’s reasonable to suggest the property is uninhabitable. 

Rule 4: Health and safety evidence matters more than insurer opinions

Disputes often arise because an insurer or their supplier claims the home is “habitable”. These opinions are frequently based on reports from assessors or restoration contractors, who are often not qualified to determine health risk. 

If you’re unhappy with your insurer’s assessment of the habitability of your property, you could point out that:

• The insurer relies on habitability opinions from unqualified parties, or
• A suitably qualified expert, such as an occupational hygienist or environmental scientist, should be engaged to comment on health or safety risks
  
  

This is especially relevant for mould claims. Exposure thresholds vary depending on occupant vulnerability, and what may be acceptable for one household may be unsafe for another. 

Where no qualified assessment exists, insurers should be cautious about declaring a property safe. If they do so without proper evidence, you can raise the risks of negligence and foreseeable harm, particularly where health issues, children, or vulnerable occupants are involved. 

Rule 5: Insurers must fund reasonable and workable accommodation, not just the cheapest option

While some policies have limits for accommodation costs weekly, many insurers will offer accommodation that is available and suitable for your circumstances. That generally means: 

• It aligns with the policy terms
• It is suitable for your household size, access needs, pets, and location
• It reflects what is realistically available in your local market
  
  

Insurers often try to limit costs by offering short extensions, unsuitable properties, or arguing they will only pay for the exact period repairs are expected to take. In reality, accommodation often must be secured for longer, fixed periods, such as six-month leases. 

Rule 6: Learn why your insurer is kicking you out of temporary accommodation, and what you can do

Generally, insurers will end your accommodation if they believe: 

• The property is habitable, or
• The ongoing uninhabitability is not caused by an insured event

They are not entitled to do this arbitrarily. Decisions must be reasonable, evidence-based, and consistent with their duty to act fairly. 

If accommodation is cut off prematurely, you can:

• Ask for the insurer’s written reasons and supporting evidence
• Provide contrary evidence, including health or safety concerns
• Lodge a complaint with the insurer’s internal dispute resolution team

If the situation is urgent, or involves health, financial stress or vulnerability, you can escalate directly to AFCA and request urgent consideration.