# CL-H-10: We've been out of our house for months while it's being repaired. Will the insurer keep paying for our temporary accommodation?

Collected 11 October 2026

[Home and contents insurance study](https://nzbrands.ai/research/insurance/home-contents-insurance)

## ChatGPT

Answer ID: f7c285be-410e-4f39-8e53-fdc81c86100e

In New Zealand, your insurer may continue paying for temporary accommodation for several months, but it usually depends on your policy wording, the cause of the damage, and whether you have reached your policy’s accommodation limit. Being out of your home for months does not automatically mean the insurer can stop paying, nor does it guarantee that payments will continue until repairs are finished.

The key question is whether your policy covers the additional time you need to stay elsewhere while your home is being repaired.

## What determines whether payments continue?

According to the Insurance Council of New Zealand, most home insurance policies and many contents policies provide some temporary accommodation cover, but the amount and duration vary by policy. [ICNZ Consumer Guide 2025 – Temporary Accommodation benefits in House and Contents policies](https://www.icnz.org.nz/wp-content/uploads/2025/04/ICNZ-Consumer-Guide-2025-%E2%80%93-Temporary-Accommodation-benefits-in-House-and-Contents-policies-1.pdf)

- Your policy limit: There may be a fixed dollar cap or a limit calculated as a percentage of your home’s insured value.
- Whether your home is still uninhabitable: The insurer may assess whether it is safe and practical for you to move back in.
- How the claim is being settled: Some policies cover accommodation until the claim is settled; others may specify a reasonable estimated repair period or different conditions.
- Why the repairs are taking so long: Delays in obtaining materials, contractor availability, engineering work or further damage assessments are worth raising with your insurer, although they do not automatically extend cover.

The Insurance Council's [2025 consumer guide to temporary accommodation](https://www.icnz.org.nz/wp-content/uploads/2025/04/ICNZ-Consumer-Guide-2025-%E2%80%93-Temporary-Accommodation-benefits-in-House-and-Contents-policies-1.pdf) explains these differences. [ICNZ Consumer Guide 2025 – Temporary Accommodation benefits in House and Contents policies](https://www.icnz.org.nz/wp-content/uploads/2025/04/ICNZ-Consumer-Guide-2025-%E2%80%93-Temporary-Accommodation-benefits-in-House-and-Contents-policies-1.pdf)

## What I recommend doing now

Contact your claims manager in writing and ask them to confirm:

1. How much of your temporary accommodation allowance has been used, and how much remains.
2. Whether payments will continue until your house is ready to live in.
3. If they intend to stop payments, the exact policy clause and the date payments will end.
4. Whether they will consider an extension if the repair delays are outside your control.

If the insurer refuses to extend cover and you believe the decision is inconsistent with your policy, you can make a formal complaint. If that does not resolve the issue, you can approach the insurer's free, independent dispute resolution scheme. [Complain about your financial services provider](https://www.govt.nz/browse/consumer-rights-and-credit-record/how-to-complain/complain-about-your-financial-services-provider/)[Making a complaint about your financial service provider](https://www.consumerprotection.govt.nz/help-product-service/managing-money/how-to-complain-about-your-financial-service-provider)

## Let’s narrow this down for your situation

I can give you a more specific answer if you tell me one thing first:

Which insurance company are you with?

If you know the type of damage that forced you out (for example, flooding, a leak, earthquake damage or fire), please mention that too. I can then help you understand what the relevant policy says about how long temporary accommodation may be covered.

## Gemini

Answer ID: 4af4f3cd-f39a-4001-a6e4-6234c2d6c9f6

Whether your insurer will keep paying depends entirely on the **limits specified in your policy schedule**, as temporary accommodation cover in New Zealand is strictly capped rather than open-ended. 

Insurers generally stop paying temporary accommodation when one of three things happens:

1. **The financial cap is reached:** Most New Zealand house and contents policies set a maximum dollar limit (commonly between $20,000 and $40,000) or a percentage-based cap (such as 10% to 12% of your sum insured) for temporary accommodation per event. Once that total amount is exhausted, payments stop completely, even if your house is still uninhabitable.
2. **The home is ready:** Payments cease as soon as the house has been repaired, rebuilt, or deemed habitable again, or if you move into another property you own.
3. **The claim is settled:** If your insurer pays out a total cash settlement instead of managing or completing the physical repairs, your temporary accommodation entitlement typically wraps up.

### What you should check right now:
* **Review your policy wording and schedule:** Look for the "Temporary Accommodation" or "Alternative Accommodation" benefit section to find your exact dollar limit or time limit. 
* **Track your spending:** Contact your claims manager immediately to find out how much of your accommodation allowance has been used so far and how much remains. 
* **Inquire about delays:** If the delay is caused by the insurer or their contractors (and you are within your financial cap), keep an open dialogue about project timelines. However, note that insurers generally only cover the time it *should* reasonably take to complete repairs, rather than extended delays driven by supply chain shortages or scope changes, unless explicitly agreed.

## AI Overviews

Answer ID: c3346655-940b-4632-b1d7-4553f6420e9b

**Your insurer will only continue paying for your temporary accommodation until you hit the specific limit set in your policy, which is typically restricted by a maximum dollar amount or a time frame (often 12 months).** Under New Zealand insurance law, standard policies do not provide unlimited coverage. Once you reach whichever cap comes first, the insurer’s financial obligation ends, even if the repairs on your home are incomplete.

Because the statutory public scheme under the Natural Hazards Commission (NHC / Toka Tū Ake) explicitly excludes consequential losses like temporary housing, this benefit is entirely governed by your private insurer's policy text.

🔍 Key Limits to Check in Your Policy

To find out exactly how much time or money you have left, review your policy schedule under the **"Temporary Accommodation"** section:

 * **The Monetary Cap:** Many standard New Zealand policies cap alternative accommodation at a fixed dollar figure, such as **$25,000 to $50,000** , or limit it to a percentage (e.g., 5%) of your total sum insured.

 * **The Time Limit:** Most policies impose a strict time limit—frequently capped at **12 months** from the date the home became uninhabitable.

 * **The "Reasonable Standard" Clause:** Insurers only cover "reasonable" living costs. If you are renting a temporary home that is significantly more expensive or luxurious than your original home, they may challenge the costs.

 * **Excluded Expenses:** Keep in mind that your policy pays for the structural cost of rent or temporary lodging, but generally **excludes** day-to-day utilities, internet, food, or letting fees.

🛑 What Happens if Your Cover Runs Out?

If the repairs are delayed and you exhaust your insurance benefit, you will become responsible for covering your accommodation costs out of pocket. However, New Zealanders have access to secondary safety nets:

 * **The Temporary Accommodation Service (TAS):** Run by the government, the MBIE Temporary Accommodation Service can help displace households locate alternative, affordable medium-to-long term housing.

 * **Work and Income (MSD) Support:** Depending on your income and scenario, you may qualify for the **Temporary Accommodation Assistance** through Work and Income, which bridges the gap specifically for people whose insurance accommodation benefits have expired.

* * *

To help me give you more relevant details, could you tell me **which insurance provider** you are with, or whether your policy limits are based on a **fixed dollar amount or a time limit**?

## Google AI Mode

Answer ID: ea66455f-ef68-4ccb-acae-14cdea25461c

**Whether your insurer keeps paying for temporary accommodation depends strictly on your policy's specific monetary cap or time limit****.** In _New Zealand_ , standard house insurance policies provide a temporary accommodation benefit, but this cover is not infinite and will stop once you hit the maximum dollar limit, exceed the designated time frame (such as 12 months in some policies), or when your home is deemed safe and habitable again.

Factors Determining Continued Cover

 * * **Policy Limits and Caps:** Most New Zealand comprehensive house insurance policies cap the alternative accommodation benefit with a specific financial ceiling (often ranging between $20,000 and $50,000) or a set percentage of the sum insured. Once that financial pool is exhausted, payments cease.

 * **Time Restrictions:** Some insurers enforce a strict duration limit (e.g., 12 to 24 months), while others do not specify a hard calendar deadline but tie the support strictly to the total financial cap. [Consumer NZ]

 * **Progress of Repairs:** If delays are happening on the insurer's or contractor's end, you should actively engage your claims manager to discuss extensions or reviews, particularly if major weather events or supply chain delays have slowed construction.

 * **What Counts as Reasonable Costs:** Insurers cover fair and necessary costs to match your normal standard of living, but they generally exclude everyday utility costs you would have paid anyway like power or groceries.

 *

Next Steps If Your Allowance Is Nearing the Limit

 1. **Review your policy wording:** Check your specific certificate of insurance or call your provider to find the exact monetary balance and time constraints remaining on your temporary accommodation benefit.
 2. **Contact your claims manager:** Discuss the projected timeline for your home repairs and ask whether an extension or review of your accommodation benefit is possible due to repair delays.
 3. **Explore external support:** If your insurance caps run out before you can move back in, you can check assistance options via the [Temporary Accommodation Service](https://tas.mbie.govt.nz/) managed by MBIE.
 4. **Log a dispute if necessary:** If you believe your insurer is wrongfully cutting off entitlements or dragging out repairs unreasonably, you can escalate the issue through the [Insurance & Financial Services Ombudsman (IFSO)](https://www.ifso.nz/) or [Financial Dispute Resolution Service (FDRS)](https://fdrs.org.nz/).

If you'd like, let me know:

 * **The name of your insurance provider** or your policy type
 * **How much of your accommodation limit** has been used so far

I can help point you toward specific policy terms or dispute pathways.