Your household policy may only provide limited cover for costs that you incur as a result of major damage to your home. Some insurers will cover the full loss of rent due to you for up to three years and also alternative accommodation costs for a similar period, but others may limit the loss of rent due to you up to 10% of the Buildings sums insured and loss of rent payable by you and alterative accommodation costs to 10% of the Contents sum insured.
With most landlords anticipating a 5% return on the resale cost of a property there will obviously be a shortfall if the repairs to a property last longer than a few months. If you only insure your Contents for Â£50,000, a Â£5,000 contribution towards the costs of living elsewhere is not going to go far!
This problem is likely to be worse for people living in Listed Properties, where delays in planning and shortage of skilled workmen can result in a restoration period of two years or more.
With some insurers higher specific limits of cover can be purchased by prior agreement, so it is important that you should discuss this element of your cover with your broker when deciding upon the best policy for you.