What would happen if the police or fire brigade required the residents to leave their flats for an extended period even where there isn’t any damage to the structure of the building? For example, a nearby risk, such as a gas or chemical leak, makes it unsafe for the residents to remain. Who would cover the cost of alternative accommodation?
Insurance is traditionally written to cover the costs of repairing damage to your property and add-on costs incurred, such as renting a place to live, while the repairs are underway if the home is uninhabitable. Many policies, however, have a gap in provision if there has not been a specific insured event, such as a fire or flood, and where there’s no damage to the building.
If that happens where will you go? Who will help you to find and arrange alternative accommodation and who will pay for the expense incurred? Standard policies may not cover you but Deacon can help. If you would like to read up on the importance of having sufficient alternative accommodation cover Click Here.
If a recognised authority with powers of enforcement, such as the police or fire brigade, asks you to leave, our new Competent Authorities endorsement can ensure that our insurer partner will still be able to assist you with alternative arrangements for accommodation. We offer cover up to £100,000 and landlords’ loss of rent is also covered, which can help you fund alternative accommodation if you sub-let to tenants*.
Concern for welfare
You do not need to have this extra cover if damage is caused by forced entry to a flat in an emergency, for example someone has been heard calling for help or an elderly resident cannot be roused and the police decide to force entry. In this case, your standard policy can cover the costs of the damage incurred. Concern for Welfare is usually an insured peril on a buildings insurance policy.
We will offer Competent Authorities cover when recommending any new policies. If you want to find out more and add cover for the Action of Competent Authorities to an existing policy, please call us free on 08000 92 93 94 or email us at firstname.lastname@example.org
* Policy limits and exclusions may apply, please see policy wording for full terms and conditions.
The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Deacon accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.