A dripping tap doesn’t mend itself. The leak becomes steadily worse. If left undetected because no one is there in an empty property, the escape of water may become a torrent.

The Association of British Insurers (ABI) says that escape of water is one of the most common causes of property damage claims. In an unoccupied property, however, even a relatively minor leak may go undetected for days or weeks, allowing significant damage to develop before it is discovered.

What is escape of water?

Escape of water is a term used by UK insurers to describe leaks of water from the mains water supply inside a building. The escape may come from burst or frozen pipes, failed plumbing connections or fittings, radiators, boilers, or water tanks. An escape of water may also come from leaks in domestic appliances such as washing machines, dishwashers, or toilets.

Escape of water from inside the building distinguishes it from the risk of flooding, where the source of the incident is from the outside – storms or rivers bursting their banks, for example.

Why are empty properties more vulnerable to water damage?

If the escape of water occurs in an empty and unoccupied building, the damage may be more serious and widespread than usual. If even a small leak goes undetected – potentially for weeks or even months – the affected area may be extensive. As water spreads throughout the property, damage may be caused to floors, walls, ceilings, fixtures, and fittings.

This kind of steady but gradual empty property water damage may encourage the growth of damp and mould.

Do you need to tell your insurer when a property becomes unoccupied?

Yes. When a property becomes unoccupied, the risks of loss or damage typically multiply – not least through the possibility of empty property water damage. That vulnerability is likely to alter any insurer’s assessment of risk. If your property is likely to become unoccupied for longer than the period specified in your policy, you should notify your insurer or insurance broker as soon as possible.

Providing accurate and up-to-date information helps your insurer assess the risk and explain whether any changes to your cover or policy conditions are required.

How long can a property be left unoccupied before insurance changes?

Many insurers typically apply different terms and conditions once a property has been unoccupied for between 30 and 45 consecutive days, although the exact period varies between policies. If your property is likely to be empty for longer than your insurer allows, you should notify your insurer or insurance broker and check whether any additional conditions or specialist cover apply.

What precautions may insurers require for empty properties?

The increased risk of escape of water and subsequent empty property water damage is one reason why insurers may restrict, amend or withdraw certain aspects of cover once a property has been unoccupied for a specified period, depending on the policy.

As this article explains, when a property is unoccupied, insurers may also require you to play your part in mitigating the risks by:

• conducting regular, logged inspections to check for maintenance issues;

• draining down the water systems entirely; and

• maintaining an ambient level of heating during the winter months to help prevent frozen pipes.

These are simply examples of requirements that may need to be met. Each insurer may impose different obligations, so it is important to check your policy conditions carefully.

In the meantime, you may help to reduce the risks of escape of water by monitoring vulnerable pipework and appliances, promptly dealing with maintenance issues and making repairs, and isolating water supplies where appropriate.

Should I drain the water system in an empty property?

As we mentioned above, some insurers may require you to turn off the mains water supply and drain down the plumbing system if a property will be unoccupied for an extended period. This can help reduce the risk of burst pipes and escape of water damage. However, requirements vary between insurers, so always follow the conditions set out in your policy.

Do I need to inspect an unoccupied property?

Many insurers require unoccupied properties to be inspected regularly, often at specified intervals, to help identify maintenance issues, signs of damage or unauthorised access. You may also be asked to keep a written record of each inspection, so it is important to check and comply with any inspection requirements in your policy.

Does home insurance cover escape of water?

Home insurance policies may include cover for escape of water, but the level of cover, exclusions and policy conditions vary between insurers. If a property has been left unoccupied for longer than the period specified in the policy, cover may be restricted or different conditions may apply. Always check your policy wording.

Escape of water claims

Escape of water remains one of the most significant risks facing unoccupied properties. Taking sensible precautions, understanding your insurer’s requirements and reviewing your insurance arrangements before a property becomes empty may help reduce the likelihood of costly damage and ensure appropriate cover remains in place.

Further reading: Guide to unoccupied property.

There are many reasons why you might be considering purchasing a holiday home. Whatever those reasons, it is worth giving careful thought to arranging appropriate UK holiday home insurance.

Do you need holiday home insurance?

Your holiday home has almost certainly cost you a substantial sum, so you may wish to consider protecting both the property and the financial investment you have made. One way of doing that is by arranging an appropriate holiday home insurance policy.

If you have taken out a mortgage or other finance to purchase your holiday home, your lender may require you to maintain suitable buildings insurance throughout the term of the loan. Always check your mortgage conditions.

What does UK holiday home insurance typically cover?

Many holiday home insurance policies provide cover similar to that available under standard home insurance, although cover varies between insurers and policies. Depending on the insurer and policy, cover may include:

• covering your property against a range of natural perils perhaps including things such as storms, fire and so on;
• burglary, theft and vandalism arising from illegal forced intrusion into your property;
• third party liability. That is essentially covering situations where a member of the public or other third party might suffer an injury (or damage to their property) as a result of your holiday home. In such circumstances, they may take legal action against you for compensation.

Additional elements may be included either as standard or as an optional (paid for) add on.

More information: UK holiday home insurance vs standard home insurance: what’s the difference?

Does holiday home insurance cover holiday letting?

Some UK holiday home owners not only use their property for their own recreational purposes but also as an income generator through holiday or other short-term letting. If that is your intention, many insurers offer policies that are designed to cover holiday letting, provided this is disclosed when arranging the insurance.

If you have declared your use to be restricted to you, your family and your friends but then subsequently decide to start letting it out, you may be putting elements of your holiday home insurance at risk. If your circumstances change, you should tell your insurer before you begin letting the property so they can advise whether your existing policy remains suitable or whether any changes are required.

You may also need to speak to your mortgage provider if your mortgage was arranged on the basis that the property would be used solely as a second home but you now intend to let it to paying guests.

More information: Turning your UK holiday home into a holiday let: Insurance changes to consider.

Does the location of your holiday home affect insurance?

Holiday homes are often located in areas of natural beauty. Remember though that if yours is located in countryside known to be prone to flooding or is in some coastal locations also categorised as high-risk in that respect, this may affect the terms, conditions, premium or availability of cover. You may typically still be able to get UK holiday home insurance, but your provider may impose special terms or exclusions.

What should you look for when choosing holiday home insurance?   

UK holiday home insurance policies can vary considerably in the cover they provide, particularly where the property is let to guests or left unoccupied for periods of time. Taking time to compare policies and discuss your circumstances with your insurer or insurance broker can help you choose cover that meets your needs. If you are unsure whether a policy is suitable, ask for clarification before arranging cover.

Further reading: Guide to UK Holiday Homes and Holiday let insurance UK: Essential cover for short-term rental owners in 2026.

Disclaimer: This article is intended as a general guide only and does not constitute financial or insurance advice. Cover, exclusions, limits and eligibility criteria vary between insurers and policies. Always read the policy documentation carefully before purchasing insurance.

Residential let legal expenses insurance helps cover the legal costs associated with disputes between landlords and tenants. Depending on the policy, it may cover repossession proceedings, rent arrears recovery, legal advice and representation. Optional rent protection can also provide financial support if a tenant stops paying rent. Limits apply.

Why may landlords need to consider legal expenses and rent guarantee insurance?

Higher mortgage rates, a stricter tax regime, stamp duty surcharges, and rising maintenance costs make it increasingly difficult for buy-to-let landlords to turn a profit on their investments. Therefore, the protection of rental income has become more important than ever.

In many cases, the business still runs smoothly and generates sufficient rental income to cover costs. Sometimes, legal disputes and rental arrears cause significant financial pressures on already struggling landlords. That’s when residential let legal expenses insurance may come into its own.

What is residential let legal expenses insurance?

The principal safeguard enjoyed by owners of buy-to-let property is landlord insurance. While this may protect the structure and fabric of the building and offer indemnity against claims of landlord liability (up to limits), it typically provides little in the way of cover for legal expenses in disputes with tenants for the recovery of rent that is due.

Optional residential let legal expenses insurance is designed to provide that assurance through compensation for the legal expenses involved in a wide range of otherwise costly legal disputes.

What does it typically cover?

As with many types of general insurance, the nature and extent of landlord legal cover may vary. However, the broad spread of legal disputes and issues typically covered may include:

• repossession proceedings – including the costs involved in evicting tenants, by serving notices and obtaining possession through court action;

• rent arrears disputes;

• legal disputes related to breach of tenancy agreement;

• disputes related to property damage caused by tenants;

• defence of legal action against the landlord;

• legal representation (if covered), up to prescribed limits; and

• access to a legal advice helpline.

Cover varies between insurers and policies. The features outlined above are intended as a general guide only and may not be included in every policy.

What is optional rent protection?

A typical addition to residential let legal expenses insurance is optional rent protection. It is also called rent guarantee insurance and is designed to provide the landlord with financial support if a tenant stops paying the rent – and in this regard, is a natural companion to landlord legal cover.

Although closely related, the two forms of insurance cover different risks. We have already seen how landlord legal cover works.

Rent protection or rent guarantee insurance typically pays the landlord a monthly income if the tenant falls into rent arrears. The cover may be activated after a given waiting period. Payments are then subject to policy limits and conditions and usually continue either until the tenant leaves the rental property or a maximum benefit period is reached.

Why tenant referencing matters

The relationship between the landlord and their tenants forms the basis of any landlord legal expenses insurance and rental income protection. Cover largely depends on the reliability of that relationship. For both the landlord and the insurer, therefore, the selection of tenants and the references that are taken up, become critical. Although no referencing process can eliminate risk entirely, thorough tenant referencing may help reduce the likelihood of future disputes or rent arrears.

For that reason, thoroughly rigorous referencing of prospective tenants is typically a requirement of any successful proposal for legal expenses and rent guarantee insurance. When taking up references, therefore, landlords may frequently ask prospective tenants for:

• credit checks;

• verification of their employment;

• rental affordability checks; and

• references from previous landlords.

Insurers typically demand that tenants’ referencing is completed before the tenancy starts, a clear and explicit tenancy agreement is in place, the landlord takes prompt action as soon as the rent falls into arrears, and the insurer’s claims procedures are followed.

When choosing rent protection insurance, and depending on the insurer and policy selected, you may be required to obtain:

• a credit agency reference sourced from a reputable and recognised credit reference agency;
• at least one satisfactory and relevant written character reference – typically, character references from close family members would not be considered appropriate.

Legal expenses insurance vs landlord insurance

This may help explain the extent to which legal expenses insurance and optional rental income protection provide additional safeguards to standard landlord insurance alone.

Standard landlord insurance provides some of the fundamental safeguards on which landlords typically rely. That is to say, protection against the risks of loss or damage to the structure and fabric of the let property, property owner’s liability, and, especially in the case of furnished accommodation, optional cover for contents – namely, building insurance, landlord’s liability indemnity insurance, and contents insurance, respectively.

Residential let legal expenses insurance offers still further financial safeguards by covering the cost of legal expenses in the event of disputes with tenants. Policies may vary from one insurer to another, but this typically covers the cost of serving legal notices to tenants, the court proceedings necessary for repossession of the property, the pursuit of arrears of rent through the courts, and legal advice and representation.

Unless optional rent protection or rent guarantee insurance is also in place, legal expenses cover alone may not usually replace or provide compensation for the lost rent itself.

Cost versus risk

If you are weighing up the merits of residential let legal expenses insurance and optional rent protection, the exercise is similar to decisions about many other types of insurance – namely, weighing the risks against the costs.

However carefully you select your tenants, seek references, and cultivate a positive relationship, there remains a risk of disputes that ultimately lead to legal action. Disputes might arise over unpaid rent, damage caused by your tenants, behaviour that you or neighbours consider unacceptable, or a host of other reasons. The appropriate insurance may provide the legal support you need.

When coupled with optional rent protection, you may have access to financial support that helps reduce the impact of lost rental income even when a tenant falls into arrears and does not pay the rent that is due. This may help reduce some of the financial uncertainty created by tenant rent arrears.

The cost of reassurance such as this, of course, comes down to the price of the premiums you pay. That cost must also be considered in the context of the policy limits (the amount of legal assistance provided, and the rental income guaranteed), plus the exclusions and conditions of the particular policy or policies you choose.

FAQs

You may be unfamiliar with some of the benefits of residential let legal expenses insurance and the means for protecting rental income. Therefore, some of these frequently asked questions may help:

Does landlord insurance cover unpaid rent?

• standard landlord insurance typically does not cover unpaid rent;

• residential let legal expenses insurance may help to cover the costs incurred in pursuing disputes with your tenants and further, optional rent protection to provide financial compensation for unpaid rent (limits apply);

What is optional rent protection?

• typically coupled with residential let legal expenses insurance, optional rent protection may provide a continued income to help replace rental income lost through unpaid rent, subject to policy terms, conditions and limits;

• the amount of compensation and the duration of payment (which typically ends when the tenant has left or the property has been repossessed) may vary from one policy to another;

Do tenants need to be referenced?

• a condition typically applied to any legal expenses or rent guarantee insurance is that tenants must be rigorously referenced before any tenancy is granted (see the section: Why tenant referencing matters);

• the condition is understandable given the importance of the relationship between landlord and tenant in minimising the risks of future disputes or rent arrears;

When does rent protection pay out?

• if the tenant fails to pay the rent when it falls due, it is the landlord’s responsibility to immediately inform the insurer;

• however, the tenant is first given the opportunity to repay any arrears and, for that reason, rent protection typically only pays out after the completion of an initial waiting period;

• after that interval, rent protection usually pays out until the tenant has vacated the property or the property has been repossessed, with total payments up to pre-agreed limits.

Key takeaways

• standard landlord insurance does not usually cover unpaid rent;
• legal expenses insurance may help cover the costs of tenant disputes and repossession proceedings;
• optional rent protection may provide financial support if a tenant falls into rent arrears;
• tenant referencing is often a requirement of cover;
• policy limits, waiting periods, exclusions and conditions apply.

Concluding thoughts

In the current economic climate and against the background of increasing regulation of the private rented sector, many landlords may struggle to maintain a viable income stream. The challenge is made still worse if costly legal disputes arise with your tenants or they fall into rent arrears.

Residential let legal expenses insurance and optional rent protection or rent guarantee insurance may help you manage the financial and legal risks associated with tenant disputes and rent arrears.

Disclaimer: This article is provided for general information purposes only and does not constitute financial, legal or insurance advice. Cover, eligibility criteria, terms, conditions, exclusions and limits vary between insurers and policies. Landlords should review policy documentation carefully and seek advice from a specialist insurance broker or professional adviser before arranging cover.

Whether you are a homeowner, landlord, or both, it’s important to keep abreast of the latest property news. Here is a closer look at some of the latest property headlines.

House price growth softens following April surge

Building Society Nationwide published its house price index up to the end of May. It portrayed a more or less stagnant housing market as consumer confidence continues to be influenced by wider economic and geopolitical uncertainty.

The combined effect resulted in slower growth in average annual house prices from 3% in April to just 1.7% in May.

The decline in prices was also reflected in reduced buyer interest. According to Nationwide, there was a sharp drop in enquiries from potential new buyers in March. This sent the market sentiment index for April plunging to its weakest, negative point since 2023.

For all these weaker indicators, the building society remained optimistic overall. It argued that household finances remain strong, with domestic debt relative to household income at its lowest in almost 20 years. Significant savings also contribute to a steadily improving affordability with respect to the costs of housing. Nationwide suggested that affordability has remained relatively resilient despite recent increases in mortgage interest rates.

Desirable nursery catchments drive house price premiums 

The high cost of nursery places is a major concern for young working families. It may come as no surprise, therefore, that research published by Property Wire on the 8^th of June revealed that buyers are prepared to pay a hefty premium to be close to highly rated nursery schools.

The study indicated that buyers are prepared to pay an average premium of £77,926 to be close to highly rated nursery provision. Homes close to nursery schools rated by Ofsted as “Outstanding” command prices that are, on average, 16% higher than similar properties in the same local authority catchment area.

According to the research, in some parts of the country, that premium can be significantly higher. In Chelsea, for example, an average premium as high as £658,408 – or 34% more than similar houses in the same London borough – has been paid. In outer London, buyers have paid an average premium of £194,974 (33%), in Waltham Forest £153,261 (26%), and in Kingston upon Thames £117,646 (18%).

Government EPC retrofit funding gap laid bare 

In an article on the 5^th of June, the Buy Association calculated that it would cost an estimated £8,074 to bring the average privately rented home up to the government’s proposed energy efficiency standards (minimum EPC rating of C in England and Wales). There are some 2.9 million such dwellings. The total bill for bringing them all up to the required standard was estimated at £23.4 billion.

Yet the government has earmarked only £5 billion in the so-called Warm Homes Fund which is designed to help all homeowners and landlords achieve the new EPC targets. Even if the whole of that £5 billion were allocated to private sector landlords, that would still leave a £18.4 billion funding gap to help landlords retrofit energy efficiency measures.

More than half of landlords report strong tenant demand 

Citing research by the National Residential Landlords Association (NRLA), Mortgage Strategy on the 5^th of June urged government to do more to boost confidence in the private rental sector and stem the tide of landlords leaving the buy-to-let market.

The article pointed to the strong demand for rented accommodation against a background of landlords selling up and leaving the market in the face of declining confidence in government support.

Across the UK, argued the story, some 58% of landlords report demand for rented accommodation was either “strong” or “very strong”. There are regional differences, of course. In Wales and the North East, almost three-quarters (74%) of landlords surveyed reported strong demand. The lowest levels of demand appeared to be in the South East and the West Midlands – but even here, 51% of landlords reported that demand is strong.

Disclaimer: Property market conditions, legislation and government proposals can change. This article is intended as a general overview only and should not be relied upon as financial, legal or investment advice.

If you own a holiday home in the UK, you have the opportunity of earning additional income by letting it out when you are not using it. It’s an opportunity that thousands of owners seem to have seized, according to research conducted by VisitBritain.

Though it’s an attractive proposition, care needs to be taken since letting out a holiday home also comes with various risks – many of which may affect your existing insurance arrangements. Since the second home insurance you have at present may not reflect how you intend to let the property in future, you may want to review your insurance arrangements.

Further discussion may be found in our Guide to UK Holiday Homes.

How holiday home insurance differs from second home insurance

When your holiday home is occupied by paying guests, there are greater risks than when it is used only by you and your family. Let’s consider some of those distinct risks and their impact on UK holiday home insurance.

When your holiday home is regularly let to paying guests, the higher levels of footfall are almost certain to increase general wear and tear on the dwelling and its contents.

When letting your holiday home, maximising your rental income is likely to depend on a more or less constant turnover of short-term rentals. Frequent changes of occupants – not all of whom may pay your home the respect and care it deserves – may heighten the risks of loss and damage.

As the property owner of a holiday home with regular changes of occupant, you may also be held liable if a guest, one of their visitors, a neighbour, or even a member of the public suffers an injury or has their property damaged through some contact with your home.

UK holiday home insurance is designed to help protect you against this distinctive background of risks and differs from standard second home insurance as a result.

Why informing your insurer is important

With any kind of general insurance, you have an obligation to inform your insurer of any change in circumstances – changes in what insurers call “material facts”. UK holiday home insurance is no different.

Because the use of your holiday home by paying guests represents a significant change in the insured risks – a change in the material facts – you should inform your insurer before the property is let to paying guests or begins generating rental income.

Similarly, your insurer will expect to be informed if occupancy patterns change. For example, if circumstances change from an occasional rental during a quiet time of year when you are not using your second home, to its more or less continuous rental as a commercial holiday let.

Do I need specialist holiday let insurance?

Depending on how the property is used, specialist holiday let insurance may provide cover designed for the risks associated with paying guests, including accidental damage, property owners’ liability and periods when the property is unoccupied between bookings.

You may also need to consider any requirements imposed by your mortgage lender. Some residential mortgages and second-home mortgages do not automatically permit short-term holiday letting, and lenders may require you to obtain consent before accepting paying guests. In some cases, a specialist holiday let mortgage may be required.

Before advertising your property or accepting bookings, it is sensible to check both your mortgage conditions and your insurance arrangements to ensure they remain suitable for the way the property will be used. Failure to comply with mortgage conditions or insurance policy requirements could affect your cover or lead to other complications.

Insurance cover, terms, conditions and lending requirements vary, so it is important to check the details that apply to your individual circumstances.

Insurance considerations when letting a holiday home

Your existing holiday home insurance may not automatically provide cover for every risk associated with paying guests. Depending on the insurer and policy, you may need specialist holiday let insurance designed to reflect the way the property is being used. When reviewing your arrangements, you may want to pay particular attention to the following areas of cover below. Cover, limits, exclusions and policy conditions vary between insurers and policies, so it is important to check the details of any insurance arranged.

Buildings insurance

Buildings insurance may help protect the structure and fabric of your holiday home against certain types of loss or damage, although the precise scope of cover varies between insurers and policies. Cover may include, or offer options for:

• damage caused by storms and other weather-related events, which may be particularly relevant for properties in exposed coastal locations;
• accidental damage (where selected or included);
• escape of water; and
• other risks associated with a property that experiences frequent changes of occupancy.

Policy limits, exclusions and conditions will apply.

Contents insurance

Holiday lets are often rented out fully furnished, so it may be important to ensure that contents sums insured remain accurate and up to date.

Particular attention may be given to items such as appliances, televisions, guest equipment, furnishings and outdoor furniture.

Cover limits, single-item limits and exclusions may apply.

Property owners’ liability

As the owner of a holiday let, you may have legal responsibilities if someone suffers an injury or property damage connected with the property.

Liability claims might arise, for example, if a guest trips or falls, suffers an injury involving fixtures, fittings or equipment, or experiences an accident in a communal area.

Property owners’ liability insurance may help protect against certain claims, although cover limits, exclusions and conditions vary between policies. Some insurers may offer liability limits of £2 million, £5 million or more.

Loss of rental income

Income from holiday bookings may form an important part of the property’s overall return.

Depending on the policy, some holiday let insurance arrangements may provide cover for loss of rental income following an insured event that leaves the property temporarily unsuitable for guests while repairs are carried out.

Any compensation available will be subject to the terms, conditions, limits and exclusions of the policy and may be restricted by factors such as the period of disruption or the amount insured.

Seasonal occupancy and periods of unoccupancy

Your UK holiday home insurance also takes into account the probability that holiday lets are typically empty and unoccupied for significant periods during the year.

Your rental home may be closed during the off-season or the wintertime. You may also experience significant gaps between one booking and the next even during the holiday season, while some holiday cottages may be let only during peak holiday times.

Your insurer will expect to be kept informed about such periods of unoccupancy and may require specific precautionary measures to help mitigate the risk of loss or damage to the property. Typical precautions include regular – and logged – property inspections, draining down water systems, maintaining an ambient temperature during the winter, and enhanced security measures.

Location can affect insurance considerations

A whole host of factors are likely to determine the premiums you pay for your holiday home insurance, and no single factor automatically leads to any increase in that cost.

Nevertheless, the location of your holiday let may certainly affect the assessment of risk. Factors such as exposure to flooding, a coastal location, or a remote rural setting may influence that assessment. If your holiday home is a listed building or of non-standard construction, this may also be taken into account.

Security and safety measures

Your insurer expects you to take all reasonable measures to mitigate the risks of loss or damage. These typically span measures such as approved locks on doors and windows, and other security devices such as intruder alarms.

But as soon as you begin letting your holiday home – even if only on an occasional basis – there are also statutory obligations with which you must comply as a landlord. You may review a summary of these responsibilities on the official government website. Obligations include:

• annual gas safety checks (if there is a gas supply installed);

• electrical safety checks at least every five years;

• the installation of smoke and carbon monoxide alarms where appropriate.

Mortgage and lease considerations

If you are buying your holiday home with the help of a mortgage, remember that the lender may impose certain conditions or restrictions on letting the property. Similarly, you may also need to comply with any conditions written into the lease of the holiday home. There may even be covenants restricting the rights of freeholders to let the property.

These conditions and restrictions, of course, vary from one property to another, and you may want to review the relevant documentation carefully.

In many instances, mortgage lenders and lease conditions may stipulate that suitable holiday home insurance always remains in place.

Common mistakes made by holiday home owners

While a holiday home in the UK offers an opportunity to earn extra income from letting, common mistakes appear to be made by some owners. Examples – which are not universally shared by all homeowners, of course – include:

• the assumption that standard second home insurance remains suitable even when the property is let;

• a failure to inform the insurer of the intention to let the holiday home;

• underestimation of the value of the home’s contents – resulting in underinsurance;

• an unawareness of the insurance terms and conditions during periods of unoccupancy;

• the assumption that “guarantees” offered by letting platforms such as Airbnb are a suitable substitute for holiday home insurance; and

• in the case of a static caravan offered as a holiday home rental, a failure to comply with the lease requirements and regulations of the site.

When should you review your insurance?

To avoid the common mistakes made by some holiday owners and to give you peace of mind when deciding to let your holiday home, you may want to carefully review your insurance arrangements before advertising the property and accepting any bookings.

You may also want to review the suitability of your existing insurance and the sums insured following any renovations or refurbishment, and after buying new contents for the holiday home.

During rental seasons, you may also want to review your insurance arrangements if occupancy patterns change.

Your UK holiday home insurance

When you decide to let your holiday home in the UK, remember that this introduces additional risks for the property that may affect the insurance arrangements.

No one size fits all, and your UK holiday home insurance needs may be determined by a host of different factors, including – but not limited to – the type of property, its location, the expected occupancy levels, the letting arrangements, and your individual circumstances.

For further advice and guidance, you may want to consult specialist insurance brokers, such as us here at Cover4LetProperty. We’d be very happy to help.

Further information: Holiday let insurance UK: Essential cover for short-term rental owners.

Frequently asked questions

What is a UK holiday let?

A UK holiday let is a property that is rented to paying guests on a short-term basis for holidays, weekend breaks or temporary accommodation. Examples include cottages, apartments, lodges, holiday homes and some static caravans used for holiday rentals.

Can I use my existing holiday home insurance if I start letting the property?

You should check with your insurer. Standard second home insurance may not provide suitable cover once paying guests begin using the property.

Will holiday letting increase my insurance premium?

Premiums may change depending on factors such as occupancy levels, location, claims history and the type of property.

Do I need public liability insurance for a holiday let?

Property owners’ liability cover may help protect you if a guest or third party suffers injury or property damage connected to the holiday let. Some booking platforms, lenders or commercial arrangements may require certain liability cover, so it is important to check the requirements that apply to your circumstances.

What happens if my holiday let is empty during winter?

Insurers may apply conditions during periods of unoccupancy, such as regular inspections, security requirements, keeping the property at an ambient temperature or draining down water systems.

Disclaimer: This article is for general information only and does not constitute advice. Cover, limits, exclusions and policy conditions vary between insurers. Always check your policy wording and seek guidance appropriate to your circumstances.

Are you refurbishing or renovating an investment property you have bought to let? The responsibilities of a landlord are onerous enough. But there’s almost certainly been a lot to consider when planning for additional building works. Have you made sure the property remains appropriately insured while renovation work is underway?

Many investors buy property that requires updating or refurbishment before they can let it to tenants. It is important to bear in mind that the renovation work itself may increase the risks affecting your existing landlord insurance arrangements.

The precise nature of any insurance for property renovations, of course, depends on the extent of the project and your insurer.

Why insurance matters during renovation work

Insurance for your property is affected by its circumstances – how it is used and what is going on around the home. During renovation and refurbishment projects, the risks of loss or damage may increase:

• the risk of fire may increase, for example, because of electrical works by contractors;

• the contractors’ work may also increase the risk of accidental damage and damage through an escape of water;

• your liability as the property owner is likely to increase in your interactions with contractors, suppliers and other visitors to the site, as well as passing members of the public – landlord’s liability is discussed further in this article; and

• a construction site often attracts the opportunistic theft of tools, materials, and fixtures awaiting installation.

Against the background of heightened risks such as these, it is important that suitable property renovation insurance remains in place throughout the project. Throughout the building works, of course, your responsibilities as a landlord remain unchanged.

Will standard landlord insurance cover renovation work?

If you’re renovating a rental property, it all depends on the nature and extent of those building works and the policies of the insurer involved.

Different insurers, for example, may have different definitions of renovation work. In any event, however, if you are planning a mere lick of paint or a spot of redecoration, these are likely to amount merely to cosmetic improvements in any insurer’s book and not the type of structural alteration that is likely to more seriously impact your insurance cover. In the case of cosmetic improvements, your existing standard landlord insurance cover is likely to suffice. Of course, if you are unsure, always check with your insurance broker for clarification.

Because of the potentially variable definition of renovations and to satisfy any misgivings you may have about the extent of the work you have planned, you may want to inform your insurers well before the project starts. Not only is this likely to be a prudent approach, but some insurers may require such notification.

Once you have given that notification, and depending on the nature and extent of the proposed building works, your insurer may decide that your standard landlord insurance cover is no longer suitable. Instead, it may be necessary to amend or restrict the terms and conditions of the current policy – with or without any alteration to the premiums you pay.

Once again, this underscores the importance of carefully checking your insurance policy terms and conditions before the start of your renovation project.

When a property becomes unoccupied during refurbishment

Naturally, your investment property is likely to be empty before tenants can move in. It means that a further insurance complication when renovating a property is the likelihood of it becoming unoccupied during the whole or at least part of the building works.

An unoccupied property is at greater risk of theft, vandalism, and intruders such as squatters. When no one is there, otherwise minor maintenance issues may develop into major events when they remain undetected. These are explored further in this article.

Because of these heightened risks, your insurer may insist upon regular, logged inspections of the vacant property, with particular attention paid to increased security and to identify any previously undetected maintenance issues.

If the property is unoccupied for longer than between 30 and 60 consecutive days (the precise interval varying from one insurer to another), the cover offered by your standard landlord insurance may become significantly restricted or regarded as lapsed altogether. In those circumstances, you may need specialist standalone unoccupied property renovation insurance to restore the appropriate safeguards for your property.

You can read more about this in our guide: Unoccupied property insurance for renovation: Do you need cover while doing works?

Types of renovation work that may affect insurance

Renovation projects come in all shapes and sizes. Buildings insurance is likely to remain at the heart of your safeguards for the property. During renovations, building insurance may be tailored to the nature and extent of your building works:

Cosmetic improvements

• cosmetic improvements – as mentioned – are unlikely to require any change to your standard landlord insurance provisions;

• examples of such cosmetic work may include painting and decorating, laying new flooring, or minor internal upgrades;

Major refurbishment projects

• building works involving structural alterations may be described as major refurbishment projects;

• examples include extensions, loft conversions, the removal of load-bearing walls, or extensive electrical or plumbing works;

Full property renovations

• if your property is destined for a complete makeover and renovation, the risks are likely to be multiplied several times over;

• the dwelling may be empty and unoccupied for a considerable period;

• such a major refurbishment project is likely to involve multiple contractors; and

• in these circumstances, the insurance considerations are almost certain to become a major priority.

Insurance considerations before work begins

Before starting any renovation project, do inform your insurers about your plans. You are likely to be asked to provide full and accurate details about the project.

That may also be the time for your insurers to confirm whether the existing cover remains suitable or if additional conditions and restrictions may be applied. This will also give you the opportunity to review the total building sum insured.

You can read more about this here: House rebuild cost calculator: How to calculate the correct buildings insurance sum insured.

Make sure to keep written confirmation from your insurers of any agreed arrangements for the cover that is in place for your investment property insurance.

Protecting building materials and fixtures

During any renovation project, you are likely to take delivery of building materials and fixtures and fittings awaiting installation. You may also own plant and equipment stored onsite. Fixtures for kitchens, bathrooms, windows, doors, and appliances in particular, may all be targets for theft.

In view of those heightened risks, site security measures become paramount and may be specifically addressed by your renovation insurance. If your insurer has imposed particular security precautions, of course, these should be followed. They may include measures such as temporary alarms, additional lighting, and, in some cases, physical security.

Reviewing insurance once the renovation is complete

When your refurbishment project is complete, you will want to re-establish the appropriate level of standard landlord insurance.

Where the renovation has resulted in improvements that increase the value of your investment property, you may need to raise the total building sum insured – as it reflects the increased estimate of rebuilding costs in the event of a total loss. But you may also want to review the contents and fixtures cover, values which may have also increased because of the property’s improvements.

Common mistakes landlords make during renovation projects

Planning and preparing for a major renovation project may involve a myriad of considerations. Amid those preparations, it may be easy to overlook the importance of suitable property renovation insurance. Here are some of the more common mistakes likely to be made in advance of renovation work starting:

• failing to notify your insurers about all the details of your proposed project;

• assuming that your existing insurance cover will automatically continue – without further conditions or restrictions;

• leaving a property empty and unoccupied – even when builders are at work there most days – without informing your insurers;

• failing to satisfy yourself that your contractors’ insurance arrangements are in order;

• ignoring any policy conditions imposed by your insurers about security arrangements or property inspections; and

• underestimating the revised rebuilding costs – and total building sum insured – once improvements have been made and the project has been completed.

Getting insurance advice before renovating

Investment properties come in all shapes and sizes, and every renovation project is different. Thanks to those differences, the insurance requirements may also vary – potentially quite widely – depending on the property itself and the nature and scale of the proposed building works.

Any insurance when renovating a property may also come with particular policy conditions, restrictions, and exclusions, all of which are important to understand before the project begins.

These considerations point to the benefits of consulting a specialist landlord insurance broker for guidance tailored to your circumstances.

Frequently asked questions

Should I update my buildings sum insured after renovation?

If the improvements increase rebuilding costs, you may need to increase the buildings sum insured to reflect the property’s revised rebuilding value.

What insurance should contractors have?

Contractors will typically arrange their own liability insurance, but landlords should still check that suitable insurance is in place and review their own insurance requirements.

What happens if the property is empty during renovation?

Cover may be restricted if the property remains unoccupied for longer than the period permitted by your insurer. Specialist unoccupied renovation property insurance may be required.

Do I need to tell my insurer before renovating a rental property?

Many insurers require notification before work starts. Always check your policy wording and speak to your insurer or broker if you are unsure.

Does landlord insurance cover renovation work?

It may do, depending on the type and extent of the work. Cosmetic improvements may be covered, while more substantial projects may require additional arrangements.

Do you need special insurance when renovating a rental property?

You may need specialist renovation insurance if the property is empty, undergoing structural work, or if standard landlord insurance excludes or restricts cover during refurbishment.

Will renovation work increase my insurance premium?

Renovation work may increase insurance premiums because the risks associated with the property can change during building works. Factors such as the extent of the renovation, whether the property is occupied, and the type of contractors involved may all influence the premium charged. Any increase will depend on the insurer and the specific circumstances of the project.

Next steps

If you are planning to renovate or refurbish an investment property, you may first want to discuss the project with our team to explore suitable insurance options for your property while renovation work is underway.

Disclaimer: This article is for general information only. Cover, limits, exclusions and policy conditions vary between insurers. Always check your policy wording and speak to your insurance broker before work begins.

Do you know how much it would cost to rebuild your home? How would you calculate it? Perhaps you would make the mistake of some homeowners who base their insurance valuation on the past or current market value rather than the actual cost of reconstruction.

Fortunately, the task of estimating the likely cost of reconstruction is made much easier by using a rebuild cost calculator – such as the Building Cost Information Service (BCIS). The estimate is frequently used to calculate the sum insured of buildings insurance.

Bear in mind, however, that these online calculators are capable of providing realistic estimates only. The actual costs may vary, and the calculator may not be suitable for every property.

What is a rebuild cost?

The rebuild cost is an estimate of what it would cost to completely reconstruct a property from scratch following a major incident such as fire, flooding, or subsidence. The BCIS rebuild cost calculator is a good example for arriving at such an estimate.

Many elements go into any rebuild cost calculator. These may include estimates for:

• demolition of the remaining structure and clearance of the site;

• building labour and construction materials;

• professional fees – such as those for architects, surveyors, engineers, and solicitors;

• compliance with current building regulations; and

• rebuilding garages, walls, driveways, and outbuildings, if covered by insurance.

Against this background, it may be seen that the rebuilding cost of a house is neither the price you paid for the property nor its current market value. Indeed, because the estimate excludes the value of the land, the rebuild cost may be lower than the market value.

If the property is an unusual construction, a listed building, or built to an especially high specification, the cost of rebuilding may be higher than the market value.

Why rebuild cost matters for buildings insurance

If you ask how much should I insure my house for, the rebuild cost may often be the most important consideration because buildings insurance is normally based on an estimate of the rebuild cost. Your insurer will use this as a basis for the level of cover and not the property’s market value.

If the rebuild cost is pitched too low, your property may be underinsured. That is to say, the maximum settlement you may expect from any claim is less than the cost of repairing, reinstating, or rebuilding your home. This may present a considerable financial problem – and not just in the case of the need to rebuild.

Some insurers may apply what is known as an “average clause”. This means that if your property is insured for less than its actual rebuild cost, the insurer may reduce any payout in the same proportion.

By way of example, if the actual rebuild cost is £400,000 but the total building sum insured in your policy is only £300,000, the property is insured for only 75% of its true value. If you then make a claim for, say, £100,000 worth of damage, using the average clause, your insurer may pay out a settlement of only £75,000.

Please note that the above is a hypothetical example only and is provided for illustrative purposes. Actual rebuilding costs, insurance premiums, cover levels, terms, conditions, exclusions, and claim settlements will vary depending on individual circumstances, the property concerned, and the insurer selected.

How much should I insure my house for?

One of the most common questions homeowners may ask is how much they should insure their home for.

The answer is that buildings insurance is typically based on the estimated cost of rebuilding your property, rather than its market value, purchase price, or the amount outstanding on your mortgage.

The rebuild cost aims to reflect what it may cost to demolish and clear the site, source materials, pay contractors and professional fees, and reconstruct the property following a major insured event such as a fire, flood, or subsidence claim.

If the sum insured is set too low, there is a risk that the property could be underinsured.

You may wish to use a recognised rebuild cost calculator as a starting point. However, for listed buildings, period homes, non-standard construction properties, or high-value homes, a professional valuation may provide a more accurate assessment.

If you are unsure whether your current buildings insurance sum insured remains appropriate, it may be worth reviewing your rebuild cost and hiring a chartered surveyor to carry out a professional assessment.

How a house rebuild cost calculator works

As mentioned, a house rebuild cost calculator is a tool designed to estimate how much it would cost to rebuild a property from the ground up if it were completely destroyed.

Different calculators may require different details, but they typically include:

• the type of property – detached, semi-detached, terraced house, bungalow, or flat;

• number of bedrooms;

• floor area or square metre size;

• age of the property;

• construction type;

• postcode or location;

• presence of garages or outbuildings; and

• listed status or unusual features.

The calculator then compares these details with the latest UK construction cost data.

Construction costs may vary considerably across the country. The price of materials, labour rates, accessibility, and local demand for the relevant tradesmen may all affect costs regionally. Rebuilding in central London, for instance, may be higher than in many rural locations. Once again, the complexity of the home’s construction or its listed status may also affect the rebuild costs.

It is worth reiterating that any house rebuild cost calculator provides an estimate only. The estimate is only as good as the information fed into the calculator. The accuracy of the information provided may determine the reliability of the estimate.

What information should you have before using a rebuild cost calculator?

Before using any online rebuild cost calculator, it may help to gather as much accurate information about your property as possible. The quality of the estimate is often influenced by the quality of the information entered.

You may want to check the property’s floor area, the number of bedrooms, the age of the building, and whether there have been any extensions, loft conversions, garage conversions, or major structural alterations. If you have copies of planning permissions, building regulations approvals, or survey reports, these may also prove useful.

Property owners sometimes overlook detached garages, garden rooms, workshops, home offices, retaining walls, gates, driveways, and other permanent structures.

Depending on the terms and conditions of the policy, some of these features may need to be included when calculating the total buildings sum insured.

For older properties, listed buildings, and homes built using non-standard materials, it may be particularly important to ensure that any unique features are considered, or specialist advice sought. Specialist stonework, timber framing, decorative features, heritage materials, and traditional construction methods may all influence rebuilding costs.

When a rebuild cost calculator may not be suitable

While an online rebuild cost calculator is a useful tool, it may not be suitable for every type of property – especially those that are more complex or unusual.

The tool’s estimates are likely to be less reliable, therefore, when assessing the rebuild costs of:

• listed buildings;

• thatched properties;

• stone-built homes;

• period homes;

• architect-designed, unusual, or non-standard construction houses;

• timber-framed homes;

• concrete and steel-framed houses; and

• large or high-value properties.

To return properties such as these to their original state following a major event, greater care and expertise may be needed. Specialist materials might be required, rarely used or traditional construction methods may be called for, and skilled craftspeople and tradesmen may need to be employed.

These are all considerations and complexities that a standard house rebuild cost calculator is unlikely to handle. Instead, you may want to consider a professional rebuilding survey and valuation.

How inflation and supply chain issues can affect rebuilding costs

Rebuilding costs do not remain static. Construction inflation, labour shortages, changes in building regulations, and fluctuations in material prices may all affect the cost of reconstruction over time.

In recent years, many homeowners and landlords have experienced significant increases in the cost of building materials, including timber, steel, bricks, insulation products, roofing materials, and specialist components. Labour costs may also increase where there is strong demand for skilled tradespeople.

As a result, a rebuild cost estimate that appeared appropriate several years ago may no longer accurately reflect current reconstruction costs. This is one reason why many property owners choose to review their buildings insurance regularly and check that the building sum insured continues to reflect their circumstances.

It is important to remember that a rebuild cost calculator provides an estimate only and does not guarantee the amount an insurer would pay in the event of a claim. Cover, limits, exclusions, terms, conditions, and settlement calculations will vary between insurers and policies.

Rebuild costs for landlords and homeowners

The buildings insurance rebuild cost is important for both homeowners and landlords. In one case, it protects the home in which you live and in the other, it safeguards a prime business asset.

Buildings insurance for the homeowner relies on an accurate and up-to-date estimate of rebuild costs for the main residence, permanent fixtures and fittings, and any outbuildings. The total building sum insured, of course, may need to be revised following extensions or other improvements to the home. Underestimate the rebuild cost, and you may find yourself underinsured.

Calculating the rebuild cost for rental property may be more complicated – although it still centres on reconstruction of the building itself and not the rental income or its investment value.

Factors such as property conversions, multiple occupancy arrangements, and mixed-use elements may also influence rebuilding considerations.

How often should you review your rebuild cost?

In this fast-moving world, things can change rapidly. Prices may shoot up almost overnight, and the availability of builders and other tradesmen may fluctuate widely. Changes in construction costs, of course, affect the estimate of the rebuilding cost of a house.

Although circumstances may dictate a different pattern, you may want to review your rebuild cost at least once a year – and the annual renewal of your sum insured buildings insurance offers a golden opportunity to do just that.

Some insurers may index-link the rebuild estimate on which your buildings policy is based. This automatically increases the building sum insured each year according to any inflation in building costs.

Index linking may be useful in maintaining your insurance cover but beware that it may not accurately reflect big increases in local building costs, changes in the supply of specialist building materials, or renovations, extensions, or other improvements you have made to your home.

Common mistakes property owners make

Although buildings insurance rebuild costs are critical for both homeowners and landlords, mistakes and misunderstandings may be made. The more common of these are to use:

• the purchase price;

• the outstanding mortgage balance;

• an estimate of current market value;

• guessing the rebuild costs;

• failing to review and update rebuild costs after improvements or other building works; and

• relying on outdated figures and failing to review and update at least once a year.

Getting advice about buildings insurance

While an online tool such as the BCIS rebuild cost calculator may be useful, a professional may help to ensure that the unique features of your property are accurately reflected in the estimated rebuilding costs.

The advice and guidance may help to ensure that the total building sum insured and estimated rebuild costs remain appropriate. Indeed, in the case of some properties – such as listed buildings, or those of non-standard construction, or especially high specification – a professional valuation may be particularly appropriate.

Professional advice may also prove valuable in understanding your property insurance policy terms, conditions, and limits.

Insurance is important if you own any kind of property. But if you own a holiday home in the UK, there may be particular insurance risks owners should understand. Getting the most appropriate holiday home insurance cover is key to securing the protection your second home needs.

Why standard home insurance may not be enough

A common misconception, for example, is that a standard home insurance policy will provide all the safeguards you need. In fact, standard home insurance may prove inadequate – especially if you intend to let your holiday home on either a regular or occasional basis.

Your holiday home differs significantly from the home in which you live precisely because you are not there all the time, and even if it is let to paying guests, there may be longer off-season periods of the year when no one is in residence. That naturally increases the risk profile of your second home compared with your place of permanent residence.

When your holiday home is let, that risk profile is heightened still further. The property may effectively be treated as a commercial letting operation where rental income is generated from short-term guests. There may be a relatively high turnover of guests during busier times of the year. Many standard home insurance policies specifically exclude short-term or commercial letting.

As a result, an application for standard home insurance on a holiday home may be restricted or declined altogether.

Further reading: UK holiday home insurance vs standard home insurance: what’s the difference?

Key insurance risks when letting a holiday home

These are just some of the likely risks in letting your holiday home:

• damage – whether accidental or deliberate – caused by your paying guests;

• insured damage to the property arising from sudden and unforeseen events, rather than gradual wear and tear;

• theft – by your guests or third parties;

• periods of unoccupancy between bookings or out of season; and

• loss of rental income following an insured.

It is also worth noting that the protection offered by some letting platforms may be limited. See our blog: Thinking about AirBnB-ing your property?

Liability risks you should not overlook

In addition, there may be further risks surrounding your liability as the property owner, such as injuries to your guests – caused by falls, slips, trips, or faulty equipment, for example, and the legal costs of defending such claims for compensation.

With some holiday lets also featuring higher-risk amenities such as hot tubs, pools, and decking, public liability cover may be particularly important for this type of property.

Unoccupancy conditions and policy requirements

Some insurers may apply specific conditions if a holiday home is left unoccupied for extended periods. These conditions could include minimum heating requirements during winter, draining down water systems, regular inspections of the property, or maintaining security measures. Failing to comply with policy conditions may affect a claim, so it is important to check the terms of your insurance carefully.

Regulatory and contractual considerations

Remember that your mortgage lender may need to be kept informed of any decision to let your holiday home.

If it is a leasehold property, for example, check whether there are any restrictions on letting written into your lease.

You may also need to comply with local authority regulations or licensing restrictions on holiday lets.

Practical steps to reduce risk

As with any form of general insurance, your insurer is entitled to expect you to take reasonable precautions to minimise the risk of loss or damage.

These may include regular maintenance and safety checks (such as legal requirements for fire safety, gas and electrical inspections), clear letting terms for guests, detailed inventories, and reliable security measures (including locks, alarms, and key safes).

For greater security when choosing your paying guests, you may want to consider the use of a vetting platform or other forms of booking control.

Next steps

If you own a holiday home, therefore, you may wish to review your current insurance policy or speak to a specialist provider here at Cover4LetProperty to discuss UK holiday home cover options that reflect how the property is used.

Further information:

Guide to UK Holiday Homes

Thinking of letting your UK holiday home? Here’s how it changes your insurance needs

Whether you are a “professional” landlord, making your buy to let property or properties the mainstay of your livelihood, or an “accidental” landlord who unexpectedly finds themselves with a property to let, you almost certainly need landlord insurance.

With changing regulations, rising repair costs and increasing expectations from mortgage lenders and tenants alike, many landlords are now reviewing their insurance arrangements more carefully than ever before.

Choosing suitable cover is not simply about comparing prices online. It is also about understanding the risks associated with your property, the type of tenants you have and whether your policy reflects your circumstances accurately.

So, how do you find the most suitable product?

Consult a specialist landlord insurance broker

With our many years expertise and experience here at Cover4LetProperty, of course we are bound to say that, however …

• our essential mission is also echoed by the British Insurance Brokers’ Association (BIBA), which says that the purpose of an independent insurance broker is to help customers find appropriate cover at what they consider is a competitive price;
• there may be other ways of trying to find suitable landlord insurance through your own research, but an independent landlord insurance broker may be best placed to identify your specific needs as a landlord;
• a specialist broker may also be able to explain differences between policies, exclusions, excesses and optional extras in clearer, simpler language;
• it is the broker who is then able to match these needs to a wide range of products available – all the while searching for cover and pricing they believe may offer good value for money;
• different insurers may assess risks differently depending on the age of the property, construction type, tenant profile, claims history or whether the property is occupied or temporarily unoccupied;
• specialist landlord insurance may also be suitable for more complex circumstances, such as Houses in Multiple Occupation (HMOs), mixed-use properties, holiday lets or multi-property portfolios.

Landlord insurance online

Not only do we do the searching and matching of your needs to insurance products on your behalf, but we have also streamlined our processes to make them as simple and straightforward as possible:

• this often involves the use of online systems, enabling landlords to make enquiries, request quotations, submit applications and receive policy documents electronically;
• although online processes can be convenient, it is still important to check that the information provided is accurate and complete, as incorrect information could affect a future claim;
• if you prefer to speak to someone directly, many specialist brokers, including ourselves, continue to offer telephone support and guidance throughout the quotation process;
• purchasing landlord insurance online has probably never been more accessible, helping many landlords compare options and manage their policies more efficiently;
• throughout the process, brokers may contact you directly if clarification is required regarding the property, tenancy arrangements or previous insurance history.

Securing suitable landlord insurance online

Once you have decided that obtaining landlord insurance online may be the way to go, you might want to consider just what the cover is likely to include. Please remember that not all landlord insurance policies will offer the same features, benefits or limits of cover, so it is important to check the individual policy wording carefully.

What does landlord insurance cover?

Typical landlord insurance policies may include protection against loss or damage to the building itself caused by insured risks such as fire, flood, storm damage, escape of water, theft, vandalism or (often optional) accidental damage. Some insurers may also offer cover for outbuildings, garages, gates, fences or communal areas, depending on the policy selected.

If the property is furnished, landlords may also wish to consider contents cover for items they own within the property. This could include carpets, curtains, white goods or furniture supplied to tenants. Some policies may also include malicious damage by tenants, although terms, conditions and exclusions are likely to apply.

Landlord liability insurance is another important consideration. This may provide protection if a tenant, visitor or member of the public claims they have suffered injury or property damage connected to the let property. Cover limits and exclusions vary between insurers, so landlords should review the details carefully.

Many landlords also consider cover for loss of rental income. This may apply if the property becomes temporarily uninhabitable following an insured event and tenants are unable to remain in occupation. Alternative accommodation cover for tenants may also be included under some policies.

Additional, standalone supporting cover may be worth consideration, such as Residential let legal expenses and Optional rent protection. Rent guarantee insurance is designed to help landlords protect their rental income if tenants fall into arrears or stop paying rent altogether. Typically arranged alongside legal expenses cover, this type of policy may provide financial support for lost rental income while also helping with certain legal costs associated with recovering possession of the property or pursuing unpaid rent through the courts. Eligibility criteria for rent guarantee insurance often apply, including satisfactory tenant referencing and compliance with tenancy agreements and legal obligations. Policies and limits vary between insurers, so landlords should always check the policy wording carefully to understand exactly what is and is not included.

Meeting legal and regulatory requirements

In addition to arranging suitable cover, landlords should also ensure they continue to meet legal and regulatory obligations relating to their property. This may include gas safety requirements, electrical safety inspections, smoke alarms, tenancy deposit protection and maintaining the property in a safe condition. Insurance alone does not remove a landlord’s legal responsibilities.

Further reading: Landlords Guide to Health & Safety and Landlord Legislation Guide.

Mortgage lender requirements and lease agreements

Mortgage lenders or lease agreements may also require landlords to maintain appropriate buildings insurance at all times. If the property becomes unoccupied for a prolonged period, landlords should notify their insurer, as certain restrictions or conditions may apply during periods of vacancy. Unoccupied property insurance may typically be required.

Finding and arranging landlord insurance online or over the ‘phone through a specialist provider with expertise and experience in matching landlords to suitable products may prove one of the simplest and most straightforward ways of obtaining cover that reflects your circumstances and requirements.

Disclaimer

This article is intended as general information only and does not constitute financial advice or a recommendation to purchase any particular insurance product. Insurance cover, terms, conditions, exclusions and premiums vary between providers and individual circumstances. Always check policy documentation carefully and seek professional advice where appropriate.

Selling a property can create insurance complications many homeowners do not expect. The process of selling your home – from its initial listing, through viewings, offers, exchange of contracts and completion – can take weeks or months.

During that process, the dwelling is likely to start off occupied but sooner or later may become unoccupied. As a result, the nature and extent of any existing property insurance cover may change, particularly if the property becomes empty for an extended period. In this case, unoccupied property insurance may typically be required. This is because insurers often apply different terms once a property no longer has someone living there.

Having appropriate cover in place is especially important whenever the property becomes unoccupied. That is when many insurers restrict standard home cover – or may no longer provide the same level of protection. So, you may want to check that suitable cover continues throughout the sales process with appropriate unoccupied property insurance.

Whatever the property – whether it’s your previous home, a property subject to probate, or a buy-to-let sold between tenancies – it is important to understand just what is happening to the insurance cover so that you can avoid unexpected gaps in cover.

When homes become unoccupied during sale

As far as your insurer is concerned, your home is not, of course, designated as “unoccupied” the moment it is listed for sale. It is where you have been living and where you intend to continue to live, either until the sale is completed or you have moved into your new home.

Instead, insurers typically define a property as unoccupied only when no one has been living there for longer than 30 to 60 consecutive days – the exact interval varying from one insurance policy to another. Whatever the interval, that period is likely to be exceeded for a number of reasons, including the fact that:

• the current owners have already moved into their new home;

• there is a longer than usual void between previous tenants moving out and new ones moving in;

• a property is awaiting sale subject to probate;

• the home is being refurbished prior to its sale; or

• the property is occupied only occasionally or sporadically while it is being marketed for sale.

If your property is defined as unoccupied according to the terms of your existing insurance policy, your insurer may change the level of cover provided, attach additional conditions to the continuation of the policy, or even significantly restrict the cover available.

What insurers class as an unoccupied property

Different insurers may use different definitions of an “unoccupied” property. In many cases, this means a home that has not been lived in for 30 consecutive days or more, although some policies use 45 or 60 days instead. It is important to check the wording of your own policy carefully, since cover restrictions may begin automatically once that limit is exceeded.

Also, a property can be classed as unoccupied or empty even if it is furnished.

Your mortgage agreement and property insurance

If the property is mortgaged, the lender will typically expect adequate buildings insurance to remain in place throughout the sales process.

Mortgage conditions often require the property to stay insured against risks such as fire, flood and storm damage until ownership has legally transferred to the buyer.

If the home becomes unoccupied, it is important to check whether your existing insurer continues to provide suitable cover or whether specialist unoccupied property insurance may be needed.

Insurance risks during the selling period

Why do the terms and conditions of insurance for homes being sold change in this way? As is often the case with any kind of general insurance, the terms and conditions may alter in direct response to changes in the nature and level of the insured risks. When a home is empty, insurers often view these properties as presenting a different level of risk.

Common concerns for insurers may include:

• an otherwise minor maintenance issue – such as the dripping tap that becomes a significant escape of water – may develop into a major incident if it goes unnoticed;

• storm damage may also go unreported – and, as a result, usher in further losses;

• the overall state of repair of the premises may deteriorate through lack of regular inspection and supervision;

• an unoccupied home tends to attract all manner of unwanted attention – from opportunistic thieves, for instance, intent on making off with fixtures, fittings, and any other movable equipment; and

• intrusion by vandals and others bent on causing malicious damage.

These are among the heightened risks that lead many insurers to restrict cover for your home once it has been unoccupied for the prescribed period of between 30 and 60 consecutive days (depending on the particular insurer’s policies).

In some cases, cover may be reduced to a limited range of insured risks only (such as FLEEA insurance covering against the risks of Fire, Lightning, Explosion, Earthquake and Aircraft impact). Sometimes, if your home is unoccupied for an extended period, the insurer may even treat the regular cover as having expired completely.

To maintain appropriate insurance protection for the property, alternative arrangements may need to be made for insurance for homes being sold, namely specialist, standalone, unoccupied property insurance.

Common exclusions for empty properties

Once a property becomes unoccupied, insurers may restrict certain parts of the cover. Escape of water, theft, malicious damage and accidental damage are among the areas most commonly affected. Some insurers may only continue limited cover unless additional conditions are met. Check you understand what your cover entails.

Vacant property rules

Whether your regular home insurance stays in place, additional conditions are attached to the cover, or standalone insurance for homes being sold is arranged, you still have an obligation to take every precaution to mitigate the risk of loss or damage to your unoccupied home.

To back up that responsibility, your insurer may impose specific requirements and conditions designed to reduce the risk of loss or damage at an empty property for sale. Typically, these may include – but are, of course, subject to variation from one insurer to another:

• regular inspections of the property – with visits duly recorded and logged;

• securing doors and windows appropriately – sometimes with an emphasis on upgrading locks and intruder alarms;

• removing post and other deliveries – or arranging for their care and supervision by a friend or neighbour;

• some insurers may insist that water systems are drained down to avoid the risk of an escape of water;

• the maintenance of an ambient level of heating – especially during wintry conditions when there may be a risk of frozen or burst water pipes; and

• an obligation to notify the insurer whenever the property becomes empty and unoccupied.

Your failure to comply with these or other conditions may affect the validity of any property insurance cover, so it is important to check your policy wording carefully – especially if a protracted sales process seems likely.

The longer the property remains empty while being marketed, the more likely you may need specialist empty property insurance as the appropriate solution.

How to maintain cover while your property is on the market

If you have an unoccupied property, it is important that it remains protected against a range of risks including theft, escape of water and storm damage. In the worst-case scenario, the home might be seriously damaged, and without insurance, rebuilding costs could be substantial. Unoccupied property insurance is designed to help provide financial protection following insured loss or damage.

So, how might you ensure that suitable insurance remains in place throughout the sales process? There are a number of practical steps you may take:

• since one of the biggest changes likely to occur is your home becoming unoccupied, check how your insurer defines “unoccupied” – is it after 30, 60, or some other number of consecutive days, for example;

• once your home has become empty and unoccupied, check how long your existing policy will continue to provide cover;

• make sure to notify your insurer of any change in circumstances – exactly when the home becomes empty, for example;

• follow any inspection, maintenance, or other conditions your insurer may request; and

• consider whether you need vacant property insurance once your home has been empty for longer than a month or so.

These practical steps may not only help maintain appropriate cover throughout the sales process but could also help to avoid unnecessary issues or delays later in the conveyancing process.

Further reading: How to secure an empty property.

Selling a probate property and insurance considerations

Probate properties may remain empty for extended periods while legal and administrative matters are resolved. During this time, executors may need to review whether the existing home insurance remains suitable, particularly if the property becomes unoccupied before the sale completes.

Refurbishment work and insurance implications

Some homeowners choose to carry out refurbishment or repair work before putting a property on the market. However, building works may alter the insurer’s view of the risk. Depending on the scale of the work, standard home insurance may no longer be suitable and specialist renovation insurance or unoccupied property insurance may need to be considered.

Do you need specialist insurance while a house is for sale?

Specialist insurance for homes being sold has been developed to address some of the issues discussed so far. To consider whether you might need it, you may want to ask yourself some of the following questions:

• how long do you expect the property to remain empty and unoccupied;

• will all the utilities – water, gas, and electricity – remain connected;

• are you planning any refurbishment or other building works while the property remains advertised for sale (so renovation insurance may be required);

• are there any special circumstances or issues raised on account of the property’s location;

• does the property remain appropriately secured – or do you plan to upgrade any security arrangements;

• is the proposed sale subject to the successful completion of probate; and

• if the property is mortgaged, does the lender have any further conditions, restrictions, or requirements during the sales process.

Check with your current home insurance provider and your mortgage lender to make sure that your property is appropriately insured and you are meeting the relevant insurer and lender requirements.

What happens after exchange of contracts?

Responsibility for insuring the property may change after exchange of contracts, depending on the terms agreed between buyer and seller. It is advisable to check with your solicitor and insurer to understand exactly when responsibility for the buildings insurance transfers.

Next steps

If you are planning to sell your home, or have a probate property under your care, the process may take longer than expected. So that it remains appropriately protected throughout the sales process, you might want to review the existing insurance arrangements. You may also want to think about the extent to which these might alter as the circumstances change – especially if there will be a period when the property becomes empty and unoccupied.

Depending on the circumstances, you may want to consider arranging specialist empty property insurance. This may be a practical way to arrange cover for the period the property is empty. And unlike many other forms of general insurance, cover may be arranged for periods shorter than 12 months, often for flexible periods of 3 or 6 months, depending on insurer terms.

Here at Alan Blunden, we can help you review your existing insurance arrangements and explore cover options that may be suitable while your property is on the market, including protection for periods when the home may become empty or unoccupied.