What is a Licence to Occupy?
A Licence to Occupy is the agreement that service personnel are given to live in MOD-provided accommodation. It’s a licence rather than a tenancy, which means you live in the property under terms set by the MOD and not by a landlord.
The licence sets out your rights and responsibilities, like a contract that you get when you rent a home. This will include that you are liable for damage or dilapidation to the property that’s been caused by your negligence or that of your family, visitors or pets.
What is Licence to Occupy insurance?
Licence to Occupy insurance is a specialist type of insurance policy that protects service personnel against financial liability for accidental or negligent damage to their MOD-provided accommodation. It provides cover for damage caused by you, a family member, a visitor or even a pet, up to the £20,000 maximum that the MOD can hold an occupant responsible for under the terms of their licence.
LTO is different to standard home insurance, as it is designed specifically for living in Service Family Accommodation (SFA) or Single Living Accommodation (SLA). It doesn’t insure the building on behalf of the MOD; it protects you from the bill if you are held responsible for repairing it. You become bound by these terms once you sign your PAC, or Property Acceptance Certificate.
What is the Property Acceptance Certificate?
When you move into an SLA or SFA property, you sign a Property Acceptance Certificate, or PAC. This acknowledges that you have read and understood the terms and conditions set out in the Licence to Occupy for that particular property.
In simple terms, this means you now become liable for any damage to the home.
The liability is capped at £20,000, and without insurance, you’ll have to pay any costs yourself.
Do I need Licence to Occupy insurance?
If you live in SLA or SFA, then yes. The MOD highly recommends it, and the liability it covers is one you accept the moment you move into the accommodation.
What the MOD says
The MOD strongly recommends, in accordance with JSP 464, (the MOD policy for SFA, SLA and substitute equivalents), that anyone living in Service Family Accommodation takes out Licence to Occupy insurance to cover potential liability up to £20,000. SIIAP, the Services Insurance and Investment Advisory Panel, provides a list of insurance providers who specialise in this type of cover. In some cases, military kit insurance, like that provided by Trinity, includes LTO cover as standard.
What does Licence to Occupy insurance include?
LTO insurance covers your liability for damage to the structure, fixtures and fittings of your service accommodation where you are held responsible. This could range from a flooding to a kitchen fire. Regardless of the situation, without cover, you’ll face a repair bill.
The table below shows what you will typically find included and excluded by a Licence to Occupy policy. Please note, coverage varies by provider; policies should be checked thoroughly before committing.
| Covered by LTO insurance | Not covered by LTO insurance |
| Accidental damage to the building you are liable for | Your own personal belongings |
| Damage to MOD fixtures and fittings | Wear and tear or pre-existing faults |
| Damage caused by flood, fire or escape of water | Damage you are not held liable for under your licence |
| Damage caused by your family, visitors or pets | Deliberate or malicious damage |
| Liability up to the £20,000 MOD limit | Anything above the £20,000 cap |
LTO insurance for Service Family Accommodation (SFA)
Service Family Accommodation is the housing provided to serving personnel with families. As the occupier, you are responsible for negligent damage to the property throughout the time you hold the licence. SFA insurance in the form of LTO cover meets your liability for that damage, so a one-off accident doesn’t become a costly expense when you move out.
If you are looking for insurance for SFA accommodation, this liability cover, alongside contents cover for your belongings, offers complete protection.
LTO insurance for Single Living Accommodation (SLA)
Single Living Accommodation, such as living quarters or barrack rooms, carries the same principle. Licence to Occupy cover is a form of single living accommodation insurance that protects occupants of SLA for barrack damage caused by their own negligence. It comes with the same £20,000 limit as found in LTO for SFA. If, for example, a fire starts in your room, and it’s found to be your fault, this form of insurance helps to meet the cost of the repair rather than leave it all for you to cover.
How much does Licence to Occupy insurance cost?
There isn’t one set fee for Licence to Occupy insurance, and in most cases, it isn’t bought or sold as a standalone product. In many cases, it is included as standard within military kit insurance policies, meaning LTO is rarely quoted for separately.
In cases where it is sold individually, the cost will depend on the insurance provider, the level of cover and any other benefits that may come with the coverage. It’s recommended that any serving personnel obtain several quotes from specialist military insurance providers first and check any existing kit policies to see whether Licence to Occupy is included. To help your search, you could look through the SIIAP list of providers.
Is Licence to Occupy insurance the same as contents insurance?
This is a common question, and one that, without understanding, could lead to gaps in coverage. Licence to Occupy insurance and contents insurance are not the same form of coverage, and protect two completely different things. Our table below shows the differences.
| Licence to Occupy Insurance | Contents Insurance | |
| What it protects | Your liability for damage to the accommodation | Your own belongings inside the accommodation |
| Who the money goes to | Covers the cost of repairing the MOD’s property | Covers repairing or replacing your possessions |
| Typical trigger | You are held responsible for damage to the home | Your items are lost, stolen or damaged |
| Example | A flood from your appliance damages the kitchen | The same flood ruins your sofa and TV |
| Cap | £20,000 (MOD liability limit) | Set by your insurance policy |
In short, LTO covers the home (SLA and SFA), and contents and personal possessions insurance covers your stuff. with LTO working alongside these policies to protect against the repair liability or march out liability. Having one policy but not the other leaves you with costs to bear on the side that is not insured.
How to get Licence to Occupy Insurance
There are three routes to securing a comprehensive policy. We outline them below:
- Through a specialist military insurer: Insurance providers, like Trinity, understand SLA and SFA and build LTO cover around the realities of service accommodation rather than bolting it on to a civilian policy, as can be found with providers not specialising in cover for military personnel.
- Added on to military kit insurance: Many kit policies, ours included, include LTO cover as standard, so you might even be holding a policy without realising. Check your policy wording for full clarity or speak to your provider before sourcing a separate product.
- Through the SIIAP provider list: The Services Insurance and Investment Advisory Panel lists insurers offering specialist cover like this, providing you with a reliable way to compare options.
Comparing providers will help you find the best LTO policy for your circumstances. The cheapest may often appear the most attractive, but assess the cover, its limits and what benefits it may include to ensure it aligns with your needs before committing to a policy.
At Trinity, military kit insurance comes with Licence to Occupy cover as standard, protecting the occupier up to £20,000 on any one claim for damage to the buildings, fixtures or fittings of your home or room caused by fire, flooding or theft. For those who own their own home, or rent privately, we also provide military home insurance that includes home emergency cover, family legal protection and £2,000 of kit insurance.
For a specially tailored quote that makes sure both your home and kit are protected, contact our team. Request a call back or get in touch today to find out more.
Frequently Asked Questions about Licence to Occupy Insurance
Is LTO insurance compulsory?
Licence to Occupy insurance is not a legal requirement, but the MOD strongly recommends it under JSP 464 for anyone living in SFA or SLA. Given that you accept personal liability for up to £20,000 in damage costs the moment you sign your Property Acceptance Certificate, it is strongly advisable for all service personnel in MOD-provided accommodation.
Does kit insurance include LTO cover?
In many cases, yes. Trinity’s military kit insurance includes Licence to Occupy cover as standard, meaning you may already be protected without a separate policy. Check your policy wording to confirm or contact your provider directly before purchasing standalone cover.
What is the maximum I can be charged for damage to MOD accommodation?
The MOD can hold an occupant liable for up to £20,000 in repair costs under the terms of their Licence to Occupy. This is the figure your LTO insurance is designed to cover, and it applies whether you are in SFA or SLA.
Can I get Licence to Occupy insurance as a standalone policy?
LTO cover is not always sold as a standalone product — it is more commonly bundled within military kit or contents insurance. If you are looking for standalone cover, the SIIAP provider list is a reliable starting point for comparing specialist military insurers.