Home insurance claim - need to move out

Leasy

Hi there, 

I am looking for advice. 

We've had a major leak and our insurance has advised we need to move out for a few months whilst the work is carried out to repair the house. 

They're looking for temporary accommodation for us.

A family member has offered to put us up but we will obviously need to pay our way as they currently live on their own on a pension and bills will increase significantly. 

We are a family of 5, two adults and three children inc a newborn baby, plus a dog. The insurance are offering £100 a week for the inconvenience of moving out and to cover the increase in costs for our family. I am just wondering if this seems a reasonable amount? 

The builders (instructed by the insurance so with knowledge of insurance claims) have told us this isn't enough and the insurance are trying their luck as it would be much more for them if they have to find us a property and cover the bills in that property.

I have never had to claim on insurance before so have no idea how it works or what is considered reasonable. Any advice would be much appreciated.

Username03725

If tour insurers are covering the cost there seems to be no reason to 'impose' your family on a pensioners household for an indeterminate number of months. Find a suitable rental property and let the insurer pay. You've paid the premiums for them to take the risk. I see no reason to take a less than ideal solution to save on their costs.

Obviously if you and the pension household are very keen on the arrangement you've already agreed on that's fine. I'd still ask for more, there's no reason why your pensioner friends shouldn't benefit from the disruption; £100 a month seems to be peanuts tbh.

Sandtree

Username03725 said:

Obviously if you and the pension household are very keen on the arrangement you've already agreed on that's fine. I'd still ask for more, there's no reason why your pensioner friends shouldn't benefit from the disruption; £100 a month seems to be peanuts tbh.

It was £100/week rather than per month.

The FOS guidelines Settling home insurance claims (financial-ombudsman.org.uk) is £10/day for each adult and £5/day for each child as a disturbance allowance which is intended to cover increases in costs as a consequence. Decision Reference DRN2776913 (financial-ombudsman.org.uk) is an example where this was applied for someone staying with their daughter instead of Alternative Accommodation. If £100/week is therefore low as 3 kids and 2 adults should be £35/day or £245/week... things get a bit messy if you havent declared all your family members on the policy obviously (seeing as you mention a new born)

Unfortunately insurance doesnt work in the way that you get part of the saving by going to a relative rather than taking a rental property.