Ensuring you have a safe place to live
We understand it can be difficult when your home has been damaged, and you need temporary accommodation. We are here to help and support you through the process.
This page summarises the temporary accommodation cover included in our AAMI home insurance policies. We hope it guides you through what you may wish to consider when making your decisions.
Your home insurance policy with us includes cover for temporary accommodation.
We cover your reasonable and necessary costs if you cannot live in your home due to damage caused by an insured event, for example, a storm or a flood. If we accept your claim, we cover these costs while your home is unliveable, and while your building is being repaired or rebuilt so that it can be lived in again.
The amount we cover depends on the type of policy you have with us^.
There are two types of temporary accommodation, short term and residential.
Short term accommodation
Your cover will pay for your reasonable and necessary costs for up to four weeks, so we can complete repairs to your home if we accept your claim.
We will need to agree the costs with you. Generally, costs are based on standard rates for a hotel, motel, or serviced apartment. Your cover does not include extra costs, such as food, laundering, and room service.
Residential accommodation
If we expect your repairs will take longer than four weeks, we will discuss options with you. This includes moving you into residential accommodation. Where possible, this accommodation is in a similar area and standard to your home.
Your policy also covers costs to redirect your mail and connect to gas, water, and electricity.
The amount we cover depends on the type of policy you have with us^ . Our home policies cover reasonable and necessary temporary accommodation costs up to 10% of the home building sum insured. For some policies, this amount is only paid up to a total of 52 weeks.
For the Complete Replacement Cover® option, we will cover the necessary and reasonable costs of your temporary accommodation, up to a total of 52 weeks.
We provide this cover in addition to the cost of repairing or rebuilding your home. When our builder is completing repairs, some policies also provide limited additional cover for delays to your repairs or rebuild that are entirely out of your control and you did not contribute to. For example, delayed council approvals that you did not contribute to.
If you are moving into residential accommodation, we will also cover the reasonable and necessary costs:
- to redirect your mail and connect water, gas, and electricity, and
- of break fees to terminate a lease for a rental if you can return to your home before the lease ends.
Bond payments
Your cover does not include bond payments. If you need help with up front bond payments, please speak to your Claims Manager. You will need to repay any amount paid by us, or we will deduct it from a claim payment.
When your cover ends
We will no longer cover your temporary accommodation costs if:
- you can live in your home again, or
- you have reached your maximum cover. Both short term and residential accommodation costs contribute to your maximum cover.
Your Claims Manager will contact you before your temporary accommodation ends. They will be able to discuss your options with you.
Check your Product Disclosure Statement
Please check the Product Disclosure Statement to understand your cover, and your Certificate of Insurance for your home building sum insured. There are limits, conditions, and exclusions that apply.
If you cannot find these documents, do not worry. You can find the Product Disclosure Statement on the AAMI website, as well as your Certificate of Insurance after you have logged into your account. Or you can call us for a copy.
Your Claims Manager can also help explain your cover and the amount we will pay.
Your sum insured is the maximum amount of money you will get to repair or rebuild your home for loss or damage caused by any one incident.
Your home building sum insured was set by you when you set up or renewed your policy with us. It is your responsibility to regularly review your sum insured to ensure it is appropriate for your needs.
You can find your home building sum insured on your Certificate of Insurance.
Joe has an AAMI Home insurance policy with us. He has read the Product Disclosure Statement*, checked his Certificate of Insurance and has:
- Temporary accommodation cover up to 10% of his home building sum insured, and
- A home building sum insured of $800,000.
Therefore, Joe has up to $80,000 to cover his reasonable and necessary temporary accommodation costs.
After heavy rain, Joe’s home flooded. Joe initially moved into short term accommodation for four weeks as his home was unliveable after flooding. This cost $6,000.
Joe has up to $74,000 available in residential accommodation. He can only access this while his home is being repaired or rebuilt so that it can be lived in again.
Before you make any decisions on your temporary accommodation:
- be clear on the amount of cover you have upfront, so you can look for options that are within your budget,
- know what you need, including the location, and local amenities, and
- understand how long you may need the accommodation for.
Sometimes it can be difficult to find temporary accommodation that is in a similar area and standard to your home at a reasonable cost. Where there is widespread damage after a weather event, availability may also be limited.
Repairs and rebuilds may take longer than expected. You may need to complete works or repairs that are not covered by insurance before your insured repairs can begin. We do not cover delays caused by this.
There could be delays in getting council permits and approvals, material and trade shortages, and unforeseen circumstances.
All of the above information, including any additional delays will help you consider whether you need to make any changes, so you do not exceed your limit. Also make sure you add in extra time when you initially select your accommodation in case there are any delays.
Finally, you should consider how you could pay for temporary accommodation if you reach your maximum limit and your cover stops.
It is important we work together to find temporary accommodation that meets your needs.
- We can help find short term accommodation for you. This type of accommodation is for a maximum of four weeks.
- For residential accommodation we recommend you actively look. This helps ensure you are comfortable for the time you will be there.
Before you make any decisions or bookings, please speak to your Claims Manager. They can make sure the cost and timings are reasonable.
^ Depending on when you took out your policy with us, your cover and limits may differ. Please read your Product Disclosure Statement to check what cover and limits apply to you.
*AAMI Home Insurance Policy Product Disclosure Statement version A01463 13/12/24 A, for new business and policy renewals commencing on or after 24 January 2025.
Insurance issued by AAI Limited ABN 48 005 297 807 trading as AAMI. Any advice has been prepared without taking into account your objectives, financial situation or needs, so please consider whether it is appropriate for you before acting on it. Please read the Product Disclosure Statement that applies to your policy for full details of the cover that applies to you. Terms, conditions and exclusions apply. Benefits may be provided before a claim decision is made. This does not mean your claim has been accepted.