Properties can become unoccupied for more than a short period of time for many legitimate reasons – from refurbishment projects to gaps between tenants; an extended hospital stay to a property undergoing probate; or the sale of a home. When this happens, insurance arrangements typically may need to change.
Do you own property that will become vacant for a while? If you are a homeowner or the landlord of such a dwelling, you might want to consider the need for unoccupied property insurance.
What counts as an unoccupied property?
The definition of an unoccupied property may vary among insurers, depending on the specific wording of their policy documents. Generally, however, insurers typically regard a property as unoccupied if it has not been lived in or used as a place of residence for a given period.
That precise period may also vary from thirty up to sixty consecutive days, depending on the insurer. There is no single industry-wide time limit, as this varies by insurer and policy wording.
Typically, those empty home insurance policy conditions come into play even when the property is in use most days – when the builders are in, for example – but there is no one continuously living there or sleeping overnight.
While “unoccupied” is the key term, insurers may also use words such as empty or vacant – sometimes interchangeably. It may also be useful to note that a property can still be classed as unoccupied (empty), even if it is furnished.
Insurers may also apply different conditions – with different unoccupied property time limits – depending on whether the dwelling is the main residence, a buy to let property, or a second or holiday home.
Why insurers restrict cover on empty properties
Understanding how insurers define an unoccupied property helps explain why certain restrictions may apply once a property has been empty for a period.
It’s important to know when and why your insurer might regard your property as unoccupied because, when it is, the extent of cover is likely to be significantly restricted – or may even be considered to have lapsed altogether.
The reasons for that response on the part of the insurer come down to a revised assessment of the risks to which an unoccupied property is exposed and to the absence of anyone on the premises to report an incident leading to potentially substantial loss or damage.
These are just some of the heightened risks that shape any vacant home insurance policy:
Escape of water risk
- when the property is unoccupied, and there is no one on the premises to raise the alarm, an otherwise relatively minor escape of water – let’s say from a dripping tap – may become a serious and costly flooding incident;
Vandalism and malicious damage
- an empty and unoccupied property frequently may become more attractive to intruders or vandals – when there is no one around to disturb their vandalism, intrusion, or even arson;
- the malicious damage caused by such intruders and vandals may prove extremely expensive to repair;
Theft and opportunistic crime
- in the same way that an unoccupied property is often a magnet for vandals, thieves and would-be thieves are also attracted to the prospects of what they believe will be easy pickings;
- unoccupied buildings insurance typically considers the heightened risk of such opportunistic crime – note that terms, conditions and exclusions vary between insurers.
Unauthorised occupation and liability exposure
- your property might be empty, but you may still be held liable if anyone injures themselves on the premises – even though they have gained unauthorised entry;
- as the owner of the dwelling, you may still be held liable for the injuries sustained by squatters or others who have entered your property without your permission.
When standard home or landlord insurance may no longer be suitable
Because of these increased risks, many standard home or landlord policies include restrictions once a property becomes unoccupied. That is because of your regular insurer’s response to the heightened risks of an unoccupied property.
As we have mentioned before, a typical condition that triggers your regular insurer’s response is when the property has been unoccupied for between 30 and 60 consecutive days – with a reminder, once again, that the precise interval is likely to vary from insurer to insurer.
After that period, your insurer is likely to restrict the extent of any cover that continues to be offered. A fairly common reaction in some cases is for the insurer to reduce cover to FLEEA elements only – that is to say, cover only for major catastrophic events such as Fire, Lightning, Explosion, Earthquake, and Aircraft (FLEEA).
Alternatively, or additionally, your regular insurer may withdraw cover for elements such as accidental damage or theft while also increasing the general level of excesses against claims.
Insurers differ, and if you are concerned about how your policy may be affected when your property becomes unoccupied, take the opportunity to review the policy documents, seek expert advice and, if necessary, arrange appropriate unoccupied property insurance.
Typical restrictions on unoccupied properties
To reduce the increased risks associated with empty properties, insurers often require policyholders to follow certain risk management measures.
Your home or your let property is about to become empty and unoccupied for longer than a month or two. You have arranged the appropriate specialist empty property cover. Is that the end of the matter? It is not. Any insurer – including the provider of your unoccupied property insurance – may require you to take reasonable precautions to mitigate the risks of loss or damage.
Different insurers may have different requirements, but some of the more common precautions may include:
- regular inspections inside and outside the property – at a frequency in keeping with the overall security of the dwelling;
- keeping logs and records of inspections and any precautionary actions taken;
- the maintenance of adequate security standards appropriate to the premises in question;
- adhering to the policy requirements in terms of utilities (e.g. some may ask that you keep the heating on at an ambient temperature); and
- regular removal of all combustible or inflammable waste.
What specialist unoccupied property insurance typically may cover
Specialist empty property insurance is designed to reinstate a level of protection for a property that may otherwise be restricted under a standard policy once the premises become unoccupied. Depending on the insurer and the policy selected, a choice of cover levels may be available – ranging from more basic protection through to more comprehensive cover – allowing property owners to select a level of insurance that reflects their individual circumstances and requirements while the property remains empty.
With the precise elements of cover varying from one policy to another – and reflecting the underwriter’s specific requirements and your individual circumstances as the property owner – the following are generally the principal areas of cover:
- the protection of the structure and fabric of the building against loss or damage;
- cover for the homeowner’s or landlord’s contents – which some insurers may limit or restrict because the property is unoccupied;
- property owner’s liability indemnity insurance – in the event of claims from third parties who have been injured or had their property damaged through some contact with your dwelling;
- if appropriate, cover that reflects the special risks likely to be encountered when builders are working on the property for its renovation, extension, or refurbishment; and
- other optional extensions or additions, as appropriate.
Situations where specialist cover is often required
There are several common situations in which specialist unoccupied property insurance may be appropriate.
Specialist unoccupied property insurance might be required when your standard home or landlord’s insurance is no longer adequate to protect an empty home or let property. Those situations can be many and varied – for example:
- an extended void for the landlord awaiting new tenants to replace those who have recently quit;
- properties in the process of being sold;
- renovation, refurbishment, or extension projects – while building works are in progress;
- a dwelling that becomes vacant when the homeowners take an extended overseas holiday or need to work away from home for several months at a time;
- properties subject to probate – awaiting the distribution of assets (you can read more here: Probate property insurance: protecting an empty home after someone passes away).
Checklist: what you must tell your insurer
In any insurance contract, you have a duty to inform your insurer of any changes in “material facts” – facts that might alter the insurer’s assessment of risk. Failure to inform your insurer of those changes or an attempt to misrepresent what is happening may affect any claim you subsequently make.
If your home or let property is about to become unoccupied, therefore, make sure to inform your current insurer:
- the date the property became unoccupied;
- the reason why it is vacant;
- how long you expect it to be empty;
- any building works that are planned;
- the security measures you have put in place while it is unoccupied; and
- arrangements you have made for regular inspections of the property.
Common mistakes that can invalidate claims
It follows, therefore, that common oversights and mistakes may affect the validity of a claim.
Those errors might include a simple failure to inform your insurer that the property is about to become unoccupied for several months or more. This might be coupled with your mistaken assumption that your standard insurance cover continues unchanged – despite the looming unoccupancy.
An oversight of other details may also adversely affect the success of any claim. If you have failed to keep a record of your inspection visits, for instance, or forgot or otherwise did not comply with conditions set out by your insurer for the management of heating or water systems.
Frequently asked questions about unoccupied property insurance
How do insurers define an unoccupied property?
Insurers generally consider a property to be unoccupied if it has not been lived in for a specified period. This period often ranges between 30 and 60 consecutive days, although the exact timeframe varies depending on the insurer and the policy wording.
How long can a property be empty before insurance is affected?
Many insurers place restrictions on cover if a property remains unoccupied for a certain period. This period often ranges from around 30 to 60 consecutive days, although the exact limit depends on the insurer and the policy terms. Once this timeframe is reached, cover may be reduced or certain risks may no longer be included.
Do I need unoccupied property insurance if I go on holiday for two weeks?
In most cases, a short absence such as a two-week holiday will not normally require specialist unoccupied property insurance. Many standard home insurance policies allow the property to be left unattended for shorter periods, provided the absence does not exceed the time limit set out in the policy.
However, the exact definition of an unoccupied property varies between insurers. Property owners should therefore check the terms and conditions of their policy to understand how long their home can be left unoccupied before any restrictions to cover may apply.
If you are planning to be away for an extended period, or if the property will remain empty for longer than the period allowed under your policy, you may wish to speak with your insurer or broker to confirm whether any additional cover or precautions may be required.
Does standard home insurance cover an empty property?
Many standard home or landlord insurance policies may restrict cover once a property has been unoccupied for a certain period. In some cases, cover may be limited to major risks such as fire or explosion only. Property owners should always check the specific terms of their policy.
When might specialist unoccupied property insurance be needed?
Specialist cover may be appropriate when a property will remain empty for an extended period, such as during renovations, probate, property sales, tenant voids, or extended absences.
Do insurers require inspections of empty properties?
Many insurers require regular inspections of unoccupied properties as a condition of cover. These inspections help confirm that the property remains secure and that any signs of damage, maintenance issues or unauthorised entry are identified promptly.
In addition to inspections, insurers may also require policyholders to take certain precautionary measures while the property is empty. Depending on the policy wording, this may include maintaining the property at a minimum ambient temperature during colder periods, draining down water systems, or ensuring heating and water systems are appropriately managed to reduce the risk of frozen or burst pipes.
Owners may also be expected to keep a record of inspection visits and ensure that basic security measures remain in place. As conditions vary between insurers and policies, it is important to review the specific requirements set out in the policy documentation.
What happens if you don’t tell your insurer that a property has become unoccupied?
If a property becomes unoccupied and the insurer is not informed when required by the policy, it may affect how a claim is assessed. Property owners should inform their insurer of any material changes that could alter the level of risk.
Can you insure a property that is already empty?
It is often possible to arrange insurance for a property that is already unoccupied. Specialist unoccupied property insurance may be available to help protect the building and, in some cases, any remaining contents while the property is vacant.
The level of cover and any conditions will vary between insurers and may depend on factors such as how long the property has been empty, the security measures in place, and whether building works are taking place.
Owners arranging cover for an already empty property should be prepared to provide details about the property’s condition, security arrangements and inspection schedule.
As with all insurance policies, the precise terms, conditions and exclusions will be set out in the policy documentation.
Summary
If you are a homeowner or landlord of property that is about to become unoccupied, you may want to carefully review the details of your current insurance. If you think you may need to arrange unoccupied property insurance, or if you have any further questions, do not hesitate to draw on our expertise and experience here at Cover4LetProperty. Please call one of our UK-based team on 01702 606 301 – we will be happy to help.
Please note: the availability of cover, terms, conditions and exclusions will vary between insurers and policies. Property owners should always review their policy documentation or speak with their insurer or broker to confirm the cover that applies to their individual circumstances.
