Licence to Occupy

Thursday 23rd July 2020

A reminder for those who are, or may be living in Service Family Accommodation (SFA) in the future to ensure you have Licence to Occupy (LtO) insurance. There were three fires in SFA over the Christmas period; some didn’t have LtO and now face significant costs.

Standard home liability insurance does not cover SFA

When living in SFA, you will need to insure your home. Standard home liability insurance does not cover SFA. The Ministry of Defence recommends (JSP 464, Volume 1, Part 1, Section I, Paragraph 0605) that you take out a specialist type of insurance that covers your liability, up to £20,000, for any damage you or your family may do to your SFA. This is called ‘Licence to Occupy’ insurance.

The Services Insurance and Investment Advisory Panel (SIIAP) provides details of insurance providers who can ensure that you have the necessary ‘Licence to Occupy’ cover.

When you signed your Property Acceptance Certificate you acknowledged your agreement to your Licence to Occupy the property – this lays down the terms and conditions of occupancy.

Some kit insurance includes LtO

Some kit insurance providers also include LtO in established policies so worth checking your small print first!

You will be required to sign a new Licence to Occupy each time you move into a new Service family home.

See also Housing where our online section provides much information and advice.

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This story comes to you as part of the RAF FF’s themed month of July for all things relating to financial matters. As well as our online reference section on finance, you can keep yourself up to date with the information and advice – available by signing up to our (free) weekly eBulletin and/or quarterly Envoy magazine.  

July Finance Month

Photo by Micheile Henderson on Unsplash 

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