The position relating to unoccupied property insurance is relatively simple but surprisingly, sometimes misunderstood.

Let’s try to explain.

Why insurance companies care

Insurance companies typically need to understand as much as they can about the risks they’re taking on.

From their statistics, they know that typically an empty or unoccupied property is at greater risk to a variety of problems than one that’s occupied – by tenants or owners.

What are these risks? It varies but they may include:

• structural faults arising that are not noticed and quickly dealt with;
• the property is more attractive to vandals and perhaps burglars as their risks of discovery are lower;
• there may be a higher chance of cumulative damage arising because nobody was there to notice it at the earliest stage – leaking pipes leading to flooding may be one example.

So, insurance companies typically need to provide specific cover if a property is going to be left empty. That’s often called unoccupied property insurance. It is important to note that not all vacant property insurance policies may cover all the risks highlighted above, so do always check if you are unsure as to what the cover entails.

The definition of empty

This may vary between insurers but typically a definition is used of being unoccupied for more than 30 consecutive days.

Interestingly, this definition may apply equally to both landlords and owner-occupiers.

Leaving your property empty without having the appropriate insurance protection, may risk invalidating any owner-occupier home buildings and contents insurance or buy to let insurance you have on the property.

Causes

This position is not typically linked to any individual cause. It may arise due to:

• extended holidays;
• business assignments overseas;
• properties under probate;
• properties in between lettings;
• properties under redecoration or refurbishment etc.

In all these cases and many more, it would be highly advisable to take insurance advice on whether or not empty property cover is required.

Our help

Of course, we recognise that sometimes your precise situation may not appear to fit any given examples. You’re an individual and your circumstances will be unique to you.

We would be only too happy to discuss your specific circumstances and provide whatever help we can, if indeed you need it, to help you ensure that you have the appropriate unoccupied property insurance protection in place.