It’s important to know when your insurer is likely to regard any property you own as unoccupied. That’s when you might find that the safeguards typically protecting your home or let property fall short of what’s required – or may even have lapsed altogether.
When is a property classed as unoccupied for insurance purposes?
As our guide to Unoccupied Property Insurance makes clear, there are many reasons why a property may become temporarily unoccupied, such as (but not limited to):
- the home being empty while you are working away for an extended period or on a long holiday;
- during renovations;
- a let property between tenancies;
- delays in selling or purchasing a property;
- the owner moving into care, staying with family, or being hospitalised;
- probate or legal matters following a death;
- a newly purchased property awaiting occupation.
Although there are some variations between different insurers, most will regard a residential property as unoccupied if no one is living there or sleeping there for a prescribed period of time (typically 45-60 consecutive days but this depends on the policy wording).
It is important to note that the definition of an unoccupied dwelling still holds true even if:
- you or others – such as tradesmen if building works are in progress – regularly visit during the day;
- you or others – such as family, friends, or neighbours – check the post and other deliveries; or
- the property is under routine maintenance.
If your home or let property is likely to be regarded as unoccupied, you may need to seriously consider arranging unoccupied property insurance (or, if the property is undergoing works, renovation insurance) – and the following are some of the reasons why.
How long can my property be empty before I need unoccupied property insurance?
Typically, UK insurers will regard your property as unoccupied when no one has been living or sleeping there for between 45 to 60 consecutive days – the precise interval once again varying from one insurer to another. Why is that?
The general rule is that insurance is primarily about managing risk. If a property is empty for longer than a month or so, it becomes more vulnerable, and the risks of loss or damage increase.
As our unoccupied property FAQs blog makes clear, vacant buildings are more susceptible to undetected issues and problems such as incipient escapes of water, vandalism, break-ins, or other intruders.
In an empty building – lacking regular occupancy or maintenance – those risks are more difficult to manage. Because they are harder to manage, insurers typically may apply stricter conditions, remove elements of cover, or simply regard the usual insurance cover as having lapsed altogether.
After the property has been unoccupied for longer than the allowed amount of days – insurance cover for your property is likely to become severely restricted.
That is why unoccupied property insurance – or, where building works are taking place, specialist renovation insurance – is typically required. These policies are designed to reflect the increased risks associated with a property that is empty or undergoing works, and to provide cover that is more appropriate to those circumstances.
Does standard home insurance cover an empty property?
That restriction of the usual insurance cover is the very reason why standard home insurance typically provides inadequate cover for an empty property.
Your standard home insurance – or your landlord insurance, if the property is let to tenants – assesses risks on the understanding that the property is more or less continuously lived in and a place where its residents sleep one night after another.
As we have touched on above, when a property is left unoccupied for more than a short period, that risk profile changes. As a result, insurers will often restrict or remove certain covers, apply additional conditions such as regular inspections, or withdraw cover altogether after a specified number of days.
Your mortgage and your insurance
Using the “incorrect” type of insurance can also have implications beyond the policy itself. Where a property is mortgaged, it is commonly a condition of the mortgage agreement that appropriate buildings insurance is in place at all times. Relying on standard home or landlord insurance while a property is classed as unoccupied may mean this requirement is no longer being met, potentially placing you in breach of your mortgage terms.
For this reason, it is important to review your insurance arrangements as soon as a property becomes empty, even on a temporary basis, and ensure both insurer and lender requirements continue to be satisfied.
In summary, unoccupied property insurance is designed to address the increased risks that arise when a property is left empty for an extended period. Standard home or landlord insurance may no longer provide adequate protection once a property is classed as unoccupied, and in some cases, cover may be restricted or lapse altogether. In addition, having the “wrong” insurance in place could also affect compliance with mortgage conditions.
How Cover4LetProperty can help
If you are unsure whether your property is classed as unoccupied, how long your existing cover remains valid, or whether specialist insurance may be required, it is sensible to check before a problem arises.
Speaking to a specialist property insurance broker such as us here at Cover4LetProperty can help you understand your obligations, avoid gaps in cover, and ensure your insurance remains appropriate for your circumstances.
