Everything You Need To Know About Unoccupied Property Insurance

What is the definition of an Unoccupied Property?

The definition of an Unoccupied Property varies between Insurers. In general, however, a property is Unoccupied if it has not been lived in overnight for a period of time. This is normally 30 or 60 days, or if the property is inadequately furnished for normal habitation.

Why might a property become Unoccupied?

Properties can become unoccupied for several reasons; 

• An elderly homeowner may move into care without selling his or her property. A home may be bequeathed to relatives of the deceased homeowner, but a family dispute means it is empty. 
• The occupier might be away for work or on holiday for an extended period. 
• Properties are also often unoccupied if extensive building work is being carried out.
• Many unoccupied properties are also second homes, which have either been bought as rental properties or inherited. 
• Buy-to-let properties may be empty because of ‘voids’ between tenants or while undergoing renovation, and holiday homes may be vacant in the winter months.

What to do if your property becomes Unoccupied

Unoccupied or vacant properties carry greater risks of burglary, vandalism, theft, and fire. Damage caused by unnoticed issues, such as burst pipes, can also be worsened - whereas in an occupied property, it would be spotted much more quickly.

Your Insurer needs to know that your property is unoccupied so they can factor these increased risks into your policy terms.

As with any insurance policy, the cover is based on the information you’ve given your provider. So, if it’s incorrect, there is a risk that your policy could be cancelled, or any claims could be rejected.

Maintaining the property

Most unoccupied policies will require that the property meet a certain level of repair on the outside so as not to advertise that it is unoccupied - front gardens should be well kept, the condition of the paint and walls should not appear decrepit, and the windows should not be boarded.

Regular checks

A key condition standard on most unoccupied policies is that the property must be visited once every seven days. The person visiting the property does not need to be the policyholder or owner but can be a friend, relative or managing agency. 

The main reason for this is so that any criminal damage does not go unreported and any issues with the house, such as water leaks or damage from a storm, do not remain unrepaired, causing unnecessary further damage. 

A record of visits should be kept in good order and may be requested in the event of a claim.

Security

Unoccupied properties are more susceptible to criminal damage, break-ins and squatters. Most insurers recommend the following:

• Key-operated devices on all opening windows and skylights
• Approved lock or mortice deadlocks of at least five levers or that conform to BS3651
• A rim automatic dead latch with a key locking handle on the inside

Finding Unoccupied Property Insurance

Finding Unoccupied Property Insurance can be a tough process, as not many insurers are keen on covering vacant properties for lengthy periods of time.

Unoccupied Property Insurance is often taken out when a Property has been or is going to be empty for an extended period, for example, if it is for sale or has had work done.

Whatever your needs are, you can get a vacant property insurance policy tailored to you. 

If necessary, you can take out cover for 3, 6, 12, or any other period. Different levels of cover are available to suit your needs and budget.

What is covered by Vacant Property Insurance

Unoccupied Property Insurance is typically broken down into the following areas:

• Buildings Insurance
• Contents Insurance
• Property Owners Liability
• Legal Expenses

What to look out for with Vacant Property Insurance

When organising your empty building insurance, it is important that you have the correct coverage for your needs.

For example, some policies will only cover you for damages caused by fire, lightning, earthquake and explosion. This means you wouldn't be covered for escape of water by a damaged pipe, which is one of the most common causes of damage in a Vacant Property.

You must also understand and be able to comply with the policy's terms and conditions. For example, you may be required to drain water systems, maintain a minimum temperature, or board up windows and/or letter boxes at the Property.

Some of these requirements might be unrealistic or difficult for you to implement, so it is advisable to work with a specialist Property Insurance Broker to help negotiate the best possible terms that fit you and the Property.

Empty Property Insurance Short Term 

If you own an Empty Property and anticipate moving in, selling it, or renting it out soon, you may need to arrange Empty Property Insurance on a short-term basis.

What is Empty Property Insurance Short Term

Empty Property Insurance Short Term can provide you with a range of coverages for your Building and Property owner Liability.

Polices are available from 3 - 6 months, or you can take out 12 months and cancel when you no longer need the cover.

What is covered by Empty Property Insurance Short Term

Empty Property Insurance Short Term can typically be broken down into the following areas:

• Buildings Insurance
• Property Owners Liability
• Contents Insurance
• Legal Expenses

What to Look Out for with Empty Property Insurance Short Term

When arranging Empty Property Insurance Short Term, it is important that you have the correct cover for your needs.

For example, some policies may only cover damages caused by fire, lightning, earthquake, or explosion. This means you won’t be covered for water escaping from a damaged pipe, one of the most common causes of damage within an Empty property.

Other things to look out for are the policy's terms and conditions. For example, you may be required to drain water systems, maintain a minimum temperature, or board up letter boxes at the property.

When taking Empty Property Insurance Short Term, you must consider how long you would need the cover. Depending on what cancellation charges the insurer may apply, it might be beneficial to take a 3-month policy rather than a 6-month policy.

Insurance for vacant properties following death

I’m often asked by a local firm of solicitors to arrange Unoccupied Buildings Insurance for properties where the owner has sadly passed away.It’s not a very pleasant situation, but if you’re acting for the estate of a recently deceased person, you will need to review their buildings and contents insurance.Many insurance companies are not keen on insuring empty properties, but when the policyholder passes away, the whole policy is no longer valid for all intents and purposes.An unoccupied buildings insurance policy in the name of the Executors can cover the buildings (and any contents if required) whilst the property is being sold or let to tenants.

As we deal with this type of request regularly and have access to several specialist insurers catering to unoccupied properties, we can arrange this cover quickly for our solicitor clients.

If you’re handling an estate that includes the deceased’s building, contact us for a speedy and no-obligation quotation.

Commercial Unoccupied Property Insurance

If you've ever purchased let house insurance or commercial buildings insurance, you may have learned that insurers are not too keen on insuring unoccupied properties.  They deal with this in two ways:

If you need unoccupied property insurance before the policy starts

If you do not have a tenant or are not occupying the property yourself when you are talking about taking out a new policy, you may find that many insurers refuse to quote. Some will want details on how long you've been marketing the property for tenants and/or how much longer you anticipate it being empty.

If you need unoccupied property insurance during the policy period

If your tenant(s) move out during the policy period or the property becomes unoccupied for any other reason, you must immediately notify your insurer or property insurance broker.  Some insurers will allow a short non-occupancy period but again want details of your intentions and efforts to have the property occupied again.

Check Your Cover Details

Many insurers restrict their cover during periods of non-occupancy to only a handful of events, such as damage caused by Fire, Lightning, Earthquake, etc. Many other causes of damage would normally be covered but are excluded while the property is empty. For example, some insurers will give you full cover for the first 30 days.

Unoccupied Property Insurance Small Print

Many property insurance policies have some small print that lists several things you must do if the property becomes unoccupied (immediately or after a period), such as board up windows and letter boxes, drain the water system, or maintain a minimum temperature.  These are just a few examples, but there can often be 6, 7 or more things the insurer will be checking for if presented with a claim on the policy.  Some of these requirements may be impossible, but you must have negotiated this before purchasing the policy, ideally through a property insurance broker.

If your property is long-term unoccupied

If your property is unoccupied for a longer period or indefinitely, your insurer may be inclined to cancel the policy and possibly refund you for the remainder of the year.  However, you must look at getting a specific unoccupied property insurance policy.  There aren't many insurers out there that offer these but a decent property insurance broker will be able to access them for you.  There are some unoccupied property insurance policies out there that give almost as much covers as when the property is occupied.

We Can Help

We are Experienced Insurance Brokers with offices in Essex and Suffolk. We can help ensure you have the right level of cover.

Please contact us if you want us to talk you through Unoccupied Property Insurance. We can offer a no-obligation quote too. You can contact us:

• Through our Live Chat
• By emailing us at info@evansinsurance.co.uk

You can also call us on 01708 289 525