Alternative Accommodation - can I take cash?

alojuly19

Hey guys

I was wondering is it possible to receive a cash settlement for alternative accommodation as opposed to going into alternative accommodation itself.

I have a high value claim with AXA where at the moment they are struggling to find anything suitable for my family hence was wondering is this something I can put out there as I can use the cash to say live with family and friends for the four month period.

Thanks in advance.

Sandtree

Yes, you can but dont expect it to be the same value as a lease on a property or B&B would have been (you dont mention the likely duration). 

The Financial Ombudsman also support complaints for compensation for those that rough it through their house technically being uninhabitable (eg no kitchen) rather than taking alternative accommodation... when the FOS does something routinely then insurers start doing it too.

Ultimately have a conversation with them.

MalMonroe

Without knowing all the facts, I assume something happened to your home and you need to be rehoused while it's being repaired, etc.

So now you will need to check your policy to see if what you are asking above is an option. I doubt anyone on here can help without having seen your insurance policy. Or you could just contact AXA to ask directly.

alojuly19

Sandtree said:

Yes, you can but dont expect it to be the same value as a lease on a property or B&B would have been (you dont mention the likely duration). 

The Financial Ombudsman also support complaints for compensation for those that rough it through their house technically being uninhabitable (eg no kitchen) rather than taking alternative accommodation... when the FOS does something routinely then insurers start doing it too.

Ultimately have a conversation with them.

Thanks

So AXA I are about to put me into accommodation for 6months at a cost of £35,000 where I’m wanting to check if I can agree a cash settlement maybe instead where I think I can stay in the property albeit with no kitchen and no use of downstairs.

Sandtree

alojuly19 said:

Sandtree said:

Yes, you can but dont expect it to be the same value as a lease on a property or B&B would have been (you dont mention the likely duration). 

The Financial Ombudsman also support complaints for compensation for those that rough it through their house technically being uninhabitable (eg no kitchen) rather than taking alternative accommodation... when the FOS does something routinely then insurers start doing it too.

Ultimately have a conversation with them.

Thanks

So AXA I are about to put me into accommodation for 6months at a cost of £35,000 where I’m wanting to check if I can agree a cash settlement maybe instead where I think I can stay in the property albeit with no kitchen and no use of downstairs.

You need to be honest with them and your plans and be also clear what the payment does and doesn't cover for... for example if you have no kitchen you could expect a disturbance allowance to include the fact you are having to buy food/takeaway each day because you dont have food storage or cooking facilities but for 6 months a mini fridge and microwave or plug in induction hob would be more realistic 

Staying at friends instead then there should still be a per night amount paid... I've known some employers do similar if employees are staying with friends/family rather than a hotel when travelling but unfortunately my current client doesn't and so can't say what an appropriate sort of rate is especially on a long term basis.

Remember that this is supposed to be making sure its cost neutral to you rather than you being rewarded/enriched for saving them money. 

csgohan4

You cannot be paid for 6 months rent elsewhere and then you stay at home instead and rough it out. You are actually put in a better position than before and albeit could be construed as fraud. 

Expect the Insurers to want an audit trail of expenses for rental if they are decent. 

Dr_Crypto

Sandtree said:

Staying at friends instead then there should still be a per night amount paid... I've known some employers do similar if employees are staying with friends/family rather than a hotel when travelling but unfortunately my current client doesn't and so can't say what an appropriate sort of rate is especially on a long term basis.

My mob offers this. It is something like £30/night vs £100 hotel allowance. 

lisyloo

csgohan4 said:

You cannot be paid for 6 months rent elsewhere and then you stay at home instead and rough it out. You are actually put in a better position than before and albeit could be construed as fraud. 

Expect the Insurers to want an audit trail of expenses for rental if they are decent. 

You are not in a better position if you have no kitchen etc.
It means more travelling (as no fridge) as probably more takeaways/meals out.

As others have said talk to them, but don't expect it to be a hotel rate.