Back in 2007, we had what was alleged to be a summer. You may remember it as it was the one where we had far too much rain, everywhere. In Gloucestershire and Hull, unfortunately there was severe flooding which took years to sort out for some.
If your home is flooded, your policy will pay for you to rent somewhere else, it is a standard addition to your policy (if it isn’t, get is changed quick!).
If you live in a flat or maisonette, things may be slightly different. You would normally arrange some sort of commercial building insurance, for the property as a whole.
In the market, you can get a bespoke block of flats insurance policy. There are dozens and dozens of different varieties and types. The cheaper ones tend to have more restricted cover. When the floods occurred, many blocks of flats or houses converted into flats, where damaged. The owners of the properties would want to get somewhere else to live, and get the insurance to pay for it.
This cover is called alternative accommodation. Some insurers do not offer it. In the event of a serious flood, the costs for this for all flat owners can be significant. The usual policy limit is 20% of the total sum insured for buildings. Another reason for having suitable cover is that when the 2007 floods occurred, the cost of rented accommodation in the locality increased by up to 50%. Supply and demand, basic economics, came into play and the costs went through the roof. Without cover, the costs for some where very high.