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Who needs unoccupied property insurance?

Whether you are a homeowner or landlord, unoccupied property insurance is needed by anyone who owns a property that will be left vacant for an extended period, typically more than 30 or 60 consecutive days, depending on the insurer.

Standard home insurance policies often don’t cover properties that are unoccupied for a long time due to the increased risks, such as theft, vandalism, water damage, or fire.

Here are some situations where unoccupied property insurance is necessary:

You are a landlord with a void property

If you are a landlord and your rental property is vacant between tenants for a prolonged period, unoccupied property insurance ensures the property remains protected.

You are selling a vacant home

If your home is on the market and empty while you wait for it to sell, unoccupied property insurance is vital to cover potential risks during this period.

Long-term travel or absence

Homeowners who leave their property vacant while travelling for an extended period (for work, retirement, or a long holiday) should consider unoccupied insurance to ensure their home is covered while they’re away.

Probate property

If you’ve inherited a property that will be unoccupied while you decide what to do with it—whether to rent, sell, or move in—this insurance is essential to protect it during the interim.

In all of these cases, you’ll typically need unoccupied property insurance to ensure your property remains properly protected.

Is your residential property undergoing works?

If you’re doing extensive renovations that require the property to be empty for a significant time, you’ll need a specialist type of insurance called renovation insurance to cover any risks while the work is being carried out.

What are the risks faced when a property is unoccupied?

Not only do you stand to lose rental income from your property whilst it is unoccupied, but there are increased risks to which it is exposed for the duration of that vacancy. For example:

Theft and vandalism

  • when premises are empty, they attract more than their fair share of vandals, squatters, arsonists, fly-tippers and graffiti artists, eventually leading to such a decline in overall security in the area as to encourage its general decline;

Maintenance and repair

  • when there are no tenants in your property, problems needing otherwise routine maintenance and repair are going to go unreported and may therefore develop into full-blown incidents – a dripping tap, for example, might soon leave the property flooded;

Weather

  • the British weather is nothing if not unpredictable – and when your property is unoccupied, storm damage, high winds, ice or snow may cause problems which are again unreported and have the potential for causing considerable damage;

Infestations

  • a property that is left empty and unoccupied may be at much higher risk of infestation by rodents or other pests

Property fraud

  • let property and property which lies empty are two categories identified by Action Fraud as vulnerable to property fraud – if your let property is currently unoccupied, therefore, it may be doubly vulnerable to property fraud.

Insurance

For all of these reasons of heightened risk and vulnerability, insurers are likely to reassess the scope and level of cover for your property once it has been unoccupied for a certain length of time – this may typically be between 30 and 60 consecutive days, depending on your insurer and whether your property is commercial or residential, as the unoccupancy periods may be different.

Once the property has been unoccupied for the prescribed number of days, the insurer may restrict the level of cover offered or regard the policy as lapsed altogether.

Unoccupied property insurance provides standalone cover to replace your regular home or landlord insurance whilst the property remains empty.  It is likely to be essential to maintain your obligation to any buy to let mortgage lender that the property remains fully and adequately insured – including those times when it is temporarily unoccupied.

Further reading: Guide to unoccupied property.

Do you have an unoccupied commercial property?

You can get a quote for unoccupied commercial property here.

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