Land Securities Trillium said its contract did not require it to provide alternative accommodation while the hall was being rebuilt at Woodside High in Haringey, north London.
But media pressure has forced the local council to provide some portacabins in the meantime.
"Generally PFI insurance does not cover for the provision of alternative accommodation,” a Trillium spokeswoman said, “because schools would end up paying more for that cover and the public sector does not deem this to be value for money."
Head teacher Joan McVittie replied that the existing insurance cover was “completely inappropriate for the needs of a school".
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