What amount is typically covered for temporary accommodation under a household policy?

The typical coverage for temporary accommodation under a household policy is generally up to £5,000. This amount is designed to assist policyholders in the event that their home becomes uninhabitable due to an insured peril, such as fire or flooding. The coverage allows families to secure alternative living arrangements, which can include hotel stays, rented apartments, or other temporary housing solutions.

The rationale for the £5,000 limit is to provide sufficient financial support for typical accommodation needs while ensuring that insurers can manage risk effectively. This limit can vary based on the specifics of the policy and the insurer, but most household policies include contingencies for such situations to help alleviate the financial burden on policyholders during a challenging time.

Higher or lower limits may exist in certain policies, but £5,000 strikes a balance between adequate coverage for temporary accommodation needs and the average cost of such arrangements, making it a common figure found in household insurance products.