Thinking about unoccupied property insurance?
Unoccupied property insurance is important because if your property becomes unoccupied then it may put at risk conventional buildings and contents insurance whether for an owner-occupier or a landlord.
How so?
Unoccupied properties are riskier
Insurance companies typically worry a lot when a property is unoccupied. That’s not unreasonable because a property that’s unoccupied is typically at higher risk of running into problems.
Those problems may come in many different shapes and sizes such as:
- that tiny leak that becomes a major torrent over time because nobody is there to spot it;
- the burglar that has made unoccupied properties their speciality (in fact, burglars typically prefer unoccupied properties).
For these reasons plus others, a property with nobody living in it is something that insurance companies like to know about.
In fact, if your property is not occupied then having explicit unoccupied property insurance protection is typically necessary. Ordinary buy to let landlord insurance and traditional buildings and contents insurance may specifically exclude unoccupied buildings.
Unoccupied properties can ambush you
Sound absurd?
Well, it may happen to you if you change use of the property without thinking about the insurance implications.
For example, if you are a landlord and have an extended gap between lettings you may find that under the terms of the policy your property is now classed as unoccupied and the insurance invalidated. The period without tenants after which it may require explicit unoccupied property insurance is typically 30 days, depending on the insurer.
It may also be easy to overlook this if your property is empty for more than 30 days for re-decoration etc.
This isn’t just an issue for landlords. If you’re an owner-occupier, some owner-occupier buildings policies will also exclude properties that stand empty for more than 30 days.
So, some thoughts about unoccupied property insurance may be required if you come into one of the following categories:
- have extended gaps sometimes between tenants;
- plan to have the building empty for renovation or repairs;
- have a property empty whilst under probate;
- are planning an extended holiday, business trip or sabbatical;
- have an unoccupied property pending the outcome of a divorce; etc.
Buildings and contents
It may be worth keeping in mind that, in the same circumstances, there may be some issues relating to buildings versus contents.
Some unoccupied property cover may ask that certain possessions are removed from the home in the event you plan to leave it unoccupied for any period of time.
It may also be the case that some policies many have special conditions relating to the shutting off of water supplies and draining down of systems – particularly during the winter months.
Some forms of property and contents insurance may offer discounts and incentives if you take additional security precautions. Fitting alarms, deadlocks and bolts may be well received by the insurance company and reflected in lower premiums.
Discussion in advance
Speaking in advance to an insurance company about unoccupied property protection may save you trauma downstream.
If you have a problem while your property is unoccupied then you’ll want it resolved as fast as possible with the help of your insurance company. What you may not want at that stage is to hear that as you don’t have unoccupied property insurance, then there’s nothing they can do for you!