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Unoccupied Commercial Insurance

There are many reasons why your commercial property may be unoccupied, from it awaiting sale to new tenants moving in, to the property undergoing works. At Cover4LetProperty, we are proud to offer what we believe is cost-effective unoccupied commercial property insurance cover.

We offer three levels of protection for you to choose from, meaning you only pay for the cover you need.

Some examples of the policy benefits of our unoccupied property insurance include the following:

  • the ability to get a quote and buy online immediately;
  • cover for the contents if required;
  • three levels of cover to choose from;
  • property owners’ liability;
  • cover for subsidence (not all policies include this as standard);
  • options to include theft, malicious damage cover and escape of water.

Please note that claim limits apply. You can find these in your policy documentation. Or please call us and we will be very happy to help.

Unoccupied commercial insurance FAQs

Following are some of the frequently asked questions you may have about unoccupied commercial property insurance.  If you have any further questions or would like an insurance quote, please do not hesitate to telephone us on 01702 606301.

What does unoccupied commercial insurance cover?

Unoccupied commercial property insurance provides financial protection for commercial properties that are unoccupied for a period of time. It is designed to protect business owners from financial losses that can occur due to various risks that are associated with unoccupied properties.

While policy features and benefits may vary depending on your insurer, at Cover4LetProperty, our unoccupied property insurance offers a choice of three levels of cover, so you can select the policy that most suits your needs.

Unoccupied commercial insurance typically includes cover for:

  • fire, lightning, explosion, earthquake or aircraft;
  • subsidence, ground heave or landslip;
  • property owners’ liability;
  • plus, optional full cover including theft, malicious damage and escape of water (depending on the level of cover, claim limits may apply).

Who needs unoccupied commercial property insurance?

Unoccupied commercial property insurance is essential for business owners who own commercial properties that are not being used. This may include business owners who are relocating, renovating their property, or waiting for a new tenant to move in.

What is the difference between unoccupied and occupied property insurance?

Occupied commercial property insurance provides protection for properties that are being used for commercial purposes.  

When a property is occupied, the risks associated with it are different from those of an unoccupied property. That is where unoccupied property insurance is necessary – it protects your investment against the risks it faces while standing empty.

Can I use my existing commercial property insurance if my property becomes unoccupied?

No. If you have commercial property insurance and your property becomes empty, your existing policy typically will become invalid after a number of consecutive days (generally 30-45 days).

At this time, your commercial property insurance policy may lapse or only offer very restricted cover. This is because the risks it faces change.

An empty property is more liable to theft, vandals and damage, and your insurance policy needs to reflect these increased risks.

That is why unoccupied commercial property insurance is then required, to restore the protection your property needs.

What are the common exclusions in unoccupied commercial property insurance?

Unoccupied commercial property insurance may have certain exclusions, depending on the policy, the level of cover you choose and the insurance provider. Some common exclusions typically may include:

  • wear and tear;
  • damage caused by pets, vermin or insects;
  • damage caused by faulty workmanship or design;
  • damage caused by terrorism or war;
  • loss of rent.

It is important to read the policy document carefully to understand what is excluded – or please give us a call and we will be very happy to clarify.

Is unoccupied commercial insurance compulsory?

If you have a mortgage on your business property, then typically, under the terms of your loan agreement, your property must be adequately insured at all times. This is to protect both your and your lender’s financial interest in the property.

If this is a condition of your mortgage agreement and you fail to have the necessary insurance cover, your mortgage lender could ask you to immediately repay all the outstanding loan monies and interest.

What are the benefits of unoccupied commercial insurance?

There are several benefits of purchasing unoccupied commercial insurance, including:

  • peace of mind: business owners can have peace of mind knowing that their unoccupied properties are protected against a range of risks;
  • protection against financial loss: if a property is damaged or destroyed, unoccupied commercial insurance can provide cover for repair or replacement costs, reducing the financial impact on the business;
  • compliance with lender requirements: some mortgage lenders typically require borrowers to have unoccupied commercial insurance as a condition of their loan agreement.

Further questions?

Then please do not hesitate to call us at Cover4LetProperty on 01702 606 301. We will be very happy to help.