A Guide to Unoccupied Property Insurance

Unoccupied properties can present unique challenges. Whether it’s a residential home waiting for new tenants, a property undergoing renovations or a commercial space temporarily out of use, unoccupied properties are unfortunately at increased risk of theft, vandalism and weather-related damage, making specialist insurance policies a vital safeguard.

Do you or your business own a property that is currently unoccupied? Do you have the right insurance for your unoccupied property?

What is unoccupied property insurance?

Unoccupied property insurance is a tailored policy designed to protect properties that are empty for an extended period, typically over 30 days. Standard home or commercial property insurance policies can often become invalid if the property is unoccupied for an extended duration, as insurers consider these properties to be at higher risk.

This type of policy is therefore essential!

What does unoccupied property insurance cover?

Unoccupied property insurance provides coverage for:

• Theft and vandalism, as empty properties are often targeted by intruders.

• Weather damage from storms, floods or freezing temperatures that can worsen if left unnoticed.

• Liability protection against claims if someone is injured on the property.

• Fire coverage for damage caused by fire, even in unoccupied buildings.

Why do you need unoccupied property insurance?

Leaving a property uninsured while it’s unoccupied can have serious consequences. Without specialist cover, you may face significant financial losses if the property is damaged or vandalised. Additionally, some mortgage lenders require unoccupied property insurance as part of their lending conditions.

Key features to look for in a policy

When selecting an unoccupied property insurance policy, consider the following features:

• Flexible terms: policies that allow coverage for varying lengths of time, from a few months to a year.

• Customisable coverage: the ability to add or remove cover for specific risks, such as accidental damage or legal expenses.

• Security requirements: many insurers require minimum security measures, like alarms and secure locks.

• Regular property checks: some policies may stipulate that the property is inspected regularly to maintain coverage.

Who needs unoccupied property insurance?

This type of insurance is essential for a range of property owners, including:

• Business owners, with a commercial property currently out of use

• Landlords, during void periods between tenancies.

• Homeowners, while selling or moving house, or during extended absences.

• Renovators, when properties are undergoing extensive renovations.

• Executors of estates, for properties awaiting probate or sale.

How to reduce risks for unoccupied properties

Taking proactive measures can help lower the risk of claims and may even reduce insurance premiums. You can:

• Install Security Systems

CCTV, alarms and motion-sensitive lighting can deter intruders.

• Perform regular inspections

Visit the property regularly or hire a professional service to do so.

• Maintain the property

Keep the garden tidy, repair any damage and ensure heating systems are functional to prevent frozen pipes.

• Inform neighbours

A trusted neighbour can alert you to any suspicious activity.

Finding the right cover

Unoccupied property insurance is a critical investment for all property owners in the UK. It provides crucial peace of mind and financial protection against the unique risks associated with empty buildings.

Whether you’re a landlord, homeowner or property investor, understanding your options and securing the right policy can save you from unnecessary stress and expense.

Other blogs which may be of interest:

The concerning rise in property fraud

Rising home insurance premiums in the high net worth market

A specialist broker like Ascend Broking can guide you through the complexities of property insurance. With access to tailored policies and a deep understanding of the market, we can ensure you get the right level of protection at a competitive price.

For advice on protecting your unoccupied property, contact us today on 01245 449060, or email info@ascend.broking.co.uk.