Finding temporary accommodation is a challenge. What we're doing about it.
We have listened to the stories of many Australians seeking temporary accommodation due to an adverse event that has led to a home insurance claim.
Such events have included storm, flood, fire, electrical appliance faults, fallen tree branches, burst pipes, mould and failure of stormwater systems.
The process of home insurance claims
The details are different, but the underlying story is the same.
The homeowner experience of insurers
Insurers are large organisations that move slowly. Getting on the phone to the right person can take hours of waiting on hold across the course of the claim and the building works.
Insurers try to get home owners to accept a cash settlement, usually significantly under the value of the building works required.
This includes a lower value for temporary accommodation than current market values, considering that everyday costs faced by Australians have risen across the economy.
The homeowner experience of insurer builders
Insurance builders are a mixed bag. Some are not in a hurry to get the work completed and have poor project management, leaving families displaced for weeks or months more than needed.
Even when work is done, often aspects of the work are not done correctly resulting in rework (if the homeowner pushes for it), further delaying the home owner’s ability to return to their property.
The current state of seeking temporary accommodation
The current options
While all of this is going on, the options for temporary accommodation are not fit for purpose:
- Hotel rooms are not designed to house people for over a week.
- AirBNBs are set up for short term stays only, quality is variable, and dates are usually fixed.
- Most insurers won’t’ approve a long term rental, and besides this would require furnishing the property, moving costs and paying bonds - things that add complexity to home insurance claims that insurers understandably don’t want to deal with.
The property market
All of this is exacerbated by the property market in Australia with low vacancy rates, high property values and rents, and moderate to low quality of existing housing stock. Finding a rental is hard enough for most Aussies, let alone those in crisis.
Many give up and accept a compromise
Homeowners during a home insurance claim are tired and their lives are disrupted already.
It can be tempting for them to accept poor quality temporary accommodation or an early cash settlement to bring closure to a situation rather than continually push for their insurer to honour their policy.
What we are doing about it
Boutique Property Hosts has an inventory of high-quality furnished properties across Sydney. These properties are professionally managed and meet the expectations of guests.
They are family, child and pet friendly, and have features that most Aussie families need including air conditioning, work from home spaces, and full kitchen and laundry facilities.
Boutique also has a flexible check out policy, so if guests need to extend their stay, we are usually able to accommodate this.
Conclusion
If you need assistance finding temporary accommodation during your home insurance claim, please contact Boutique Property Hosts.
*The information in this article is general in nature and is not personal advice for what to do in the situation of an insurance claim. Before acting on any information, consider the appropriateness of the information provided and seek independent advice from a qualified professional. Link to terms and conditions. *