How To Insure an Unoccupied Property

In this guide, we’ll look at how to insure an unoccupied property; let you know the risks insurance protects you from; and provide some tips for reducing the cost of cover.

What is unoccupied property insurance?

Unoccupied property insurance is a type of cover that is specially designed to protect properties that are left empty/vacant for an extended period. It’s different from regular home insurance because that cover usually only protects occupied properties.

After 30 to 60 days of consecutive unoccupancy, most regular policies will reduce or cease their cover, leaving the property vulnerable to several risks. Unoccupied property insurance can step in to assist if you happen to have a vacant home when other providers step away.

Why do you need unoccupied property insurance?

When a property is left vacant for a long period of time, it becomes more vulnerable to damage and criminal activity than regular occupied homes. They’re easy targets for burglary or vandalism because there’s no one home to deter and report this behaviour, and it’s much easier to miss damage like leaks or electrical faults too.

Given these increased risks, if you leave your home vacant the majority of insurance providers will restrict the cover available and you will need a specialist unoccupied property insurance to ensure your home is covered, whether it’s being lived in or not.

Key features to look for in unoccupied property insurance

When you’re on the lookout for unoccupied property insurance, there are a few specific things you should keep your eye out for to ensure better protection.

Building and structural damage

Make sure your policy covers damage to the property from fire, flood, storms and other structural damage such as subsidence.

Theft and vandalism

Your property is at higher risk of both vandalism and theft when left unoccupied, so make sure your policy includes this cover.

Liability

You have a common law duty of care to ensure that your property does not pose a health and safety risk of health to others by taking reasonable steps to prevent accidents. If someone is injured on your property while it’s left unoccupied, having liability cover is essential, as it protects you from potential legal defence costs where such allegations are made.

How to choose the right policy for your unoccupied property

When choosing the right unoccupied property insurance, you should also be looking into policies that line up with your needs. Make sure you keep the following factors in mind:

Duration of cover

You must determine how long a policy will last before agreeing to it. If you’ll only have a vacant property for a short time, look for short-term policies. If you’re looking at a vacant property for a longer time, opt for an extended period. Often, short-term cover is only provided for a set period. Be aware that if cover is required beyond the agreed date due to unforeseen purposes, you may have to buy another policy.

Flexibility

The best policies are flexible, allowing you to adjust your cover when necessary. For example, if your property becomes occupied sooner or remains vacant longer than anticipated, it shouldn’t be a problem.

Insurer reputation

Be sure to choose an insurance provider with a great reputation for cover and service. Check reviews and ratings to make sure the company you go with has a good track record.

Tips for reducing insurance costs on unoccupied properties

Whether you’re looking for a new policy for your unoccupied property or to trim the cost of an existing policy. Here are a few key ways you can keep insurance costs down.

Install security

You must ensure that the property remains secure during its vacancy. Failing to meet security requirements could result in denied claims.

Inspections

Many insurance policies will ask you or a responsible person on your behalf, to make regular inspections of your property to check the condition of your property, look at hazards and reduce the potential for claims to arise. Often this will be specified as a weekly condition of cover. You must make sure you follow these requirements or you risk your insurance becoming void. If you have already been checking your property on a regular basis, keep it up.

Limit the vacancy

Try to keep the time that your property is unoccupied as short as you can. Insurance companies will charge lower premiums for shorter periods.

Remove valuables

By removing any valuables and personal effects from the property, you will make it less appealing to thieves. By reducing the risks, the availability of cover is increased, enabling you to seek quotations from a wider number of companies.

Valuables are classed as jewellery; gold; silver; precious metals; clocks and watches; coin, medal and stamp collections; works of art; furs; other personal effects; photographic and video equipment; and all other portable electrical equipment.

Maintaining your unoccupied property insurance cover

Once you have unoccupied property insurance, if you want to keep it valid, you’ll have to adhere to the following practices:

Install security

You must ensure that the property remains secure during its vacancy. Failing to meet security requirements could result in denied claims.

Inspections

Many insurance policies will ask you or a responsible person on your behalf, to make regular inspections of your property to check the condition of your property, look at hazards and reduce the potential for claims to arise. Often this will be specified as a weekly condition of cover. You must make sure you follow these requirements or you risk your insurance becoming void. If you have already been checking your property on a regular basis, keep it up.

Notify the insurer of changes

If anything changes at your property, if it goes through major renovations, it is reoccupied or anything else, always keep your insurance provider in the loop. Failure to do so might invalidate your policy.

Take out unoccupied property insurance

Insuring an unoccupied property is just as important as an occupied one. Whether your property is empty for a short time or for an extended period, securing the right unoccupied property insurance can give you peace of mind and financial protection if something happens.

Get an unoccupied property insurance quote

At Towergate, our experts can look to find a quote for unoccupied property insurance to suit your specific circumstances.

It's quick and easy to get one either online or by calling us on 0344 736 8310.

About the author

James Cooper is a respected industry leader with over 10 years' experience in the home and property insurance sector. He works across a broad range of insurance product and policy development and delivery, including product development; customer sales and marketing; and P&L accountability.