If your let property is without a tenant, or you are a homeowner who is living or working away from home for a period of time, or even if you have inherited a property that you are not quite sure what to do with, you all have one thing in common – the need for unoccupied property insurance.
Once a property has been left empty typically for a period of 30-45 consecutive days, then your existing buildings insurance may typically offer only restricted cover – or it may lapse altogether. This is where unoccupied property insurance steps up – to provide the protection your property needs.
Check out our short video: Do I need specialist unoccupied property insurance?
What does empty property insurance cover?
We offer different cover levels from the basic cover right up to comprehensive unoccupied property insurance cover.
There are policies available to all that specifically cater to empty buildings and these start with the very basic limited cover of Fire, Lightning, Earthquake, Explosion and Aircraft perils. For additional costs these policies can be increased to offer extra benefits (except Accidental Damage).
Property owners liability cover
Property owners’ liability cover is an element of property insurance policy designed to protect property owners from legal liability for any injuries or damage that third parties might suffer while on their property. For example:
- Bodily injury claims: This insurance covers the costs associated with claims made by individuals who may be injured while on the property. For example, if a visitor slips on an icy path leading to your rental property and sustains injuries, they might file a claim against you. In the event of a successful claim, property owners’ liability insurance would help cover legal fees and any compensation that may be awarded, less the policy excess.
- Property damage claims: If your property causes damage to a third party’s property, this insurance can cover the costs. For example, if a part of your building falls and damages a parked car, or if a pipe bursts and causes water damage to a neighbour’s premises, this insurance would help cover the costs of repairs and any legal claims made against you.
- Legal costs: Property owners’ liability insurance also typically covers the legal costs of defending against a claim. This includes solicitor fees, court costs, and any other expenses related to legal proceedings, up to the pre-agreed limit detailed on your policy.
- Compensation awards: If a claim against you is successful, this insurance helps pay the compensation awarded to the claimant, up to the limit of your policy.
Having property owners’ liability insurance is important because accidents can happen, and property owners can be held legally responsible for injuries or damages that occur on their premises. This insurance provides financial protection against potentially substantial legal costs and compensation claims, which could otherwise seriously impact the property owner’s financial stability.
What are risks and restrictions?
If you spot a water leak at home, you call a plumber straight away and costs are reduced. If you spot a leak and do nothing for 10 days, the costs naturally go up and this is the reason vacant properties cost more to cover as people are rarely in them to check everything is okay.
This is also why restrictions are applied or, as we call them, Policy Endorsements are added. Inspecting the property regularly reduces the cost of claims, makes it easier to know if squatters have arrived and also shows the property is not abandoned.
Draining the water or leaving the heating on stops pipes freezing and splitting, also reducing claim costs as well as stopping damp from forming and spreading throughout the property.
All of these put together reduce the likelihood of a claim but also show the property is being cared for. This may help speed up the process of getting it occupied again.
If you have read this article because you have an empty property (or know someone who has) and want to make sure you have the most appropriate cover; it is simple and easy to find out. Pick up the telephone and call the Cover4 Team – we will be delighted to help.
Further Reading: Guide to Unoccupied Property
