If fact, nothing could be further from the truth.

Many of the risks that a buy to let property faces can arise whether or not you actually have any tenants at all.

For any building, insurance against the main risks (that the insurance industry calls ‘perils’) such as lightning, storms, fire, flood and earthquake may be highly desirable since the cost of repairs could be substantial.

The effect of the damage resulting from any of these perils may be more serious if the damage goes unnoticed though, which is why specific insurance for empty properties may be necessary.

Some examples of this might include:

• the water from a leaking pipe in time bringing the ceiling down;
• slates dislodged during a storm allowing extensive rain damage to develop.

If you add to this the probability that an empty property may be more at risk from break-ins by thieves and from vandalism, then you may be able to appreciate the insurance providers concerns.

A final point to consider is that even when empty, someone could suffer loss or injury, which could be directly attributable to your property.

They may decide to sue you for damages.

So not having public liability cover because you decided to economise on insurance while your property was unoccupied, may turn out to be a very expensive saving on your part – and don’t forget to add in legal costs to the cheques you could be writing.

In fact you may have to pay these even if you win.

What is an empty property?

Some buy to let insurance providers may stipulate that if your property is unoccupied for a period of 30 days or more for renovations or between tenants for example, then empty property insurance (also known as vacant property insurance) may be advisable.

Your buy to let property may be one of your most important assets. Insurance for empty properties may help prevent it becoming a liability

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!

You may wonder why, if you already have buy to let insurance cover in place, you actually need additional insurance for empty properties. The simple answer to that is that you do need it because the risks to your property when it is occupied are different to those that typically prevail when it is empty. And if you fail to advise your current let property insurer that the property will be unoccupied, it could potentially render your existing cover invalid.

Tenants are caretakers

Whether or not they actually turn out to be good at the job, when you have tenants in your property they do carry out a caretaking role of a kind.

When water starts dripping in through that hole in the roof caused by a slate blowing off, threatening to damage the belongings of your tenants then they may quickly bring this to your attention. Similarly leaks or burst pipes, which could cause them major inconvenience, may not go unreported for long.

Obvious signs of occupation – lights on in the windows, gardens being kept tidy etc – may help to deter thieves and vandals from causing damage.

Tenants can also cause problems

Of course one of the functions of buy to let insurance is to protect you financially from some of the possible repercussions of having tenants in the first place.

Tenants can accidentally cause damage to your property or its fixtures and fittings.

If an aspect of your property causes injury to your tenants or somehow damages their property (that falling slate again) then you could find yourself facing a bill for damages which you may have to pay yourself if you do not have adequate buy to let house insurance in place.

Not just about tenants

Obviously tenants are not the only consideration when it comes to insurance for empty properties. Your property may also need to be protected from disasters like floods, earthquakes, storms and the like.

And it’s not just tenants who could be injured somehow as a result of your property. Anyone, even a passer-by in the street could get hurt and could sue.

Protecting your livelihood

In all probability you are in the landlord business to make money. Protecting your investment with appropriate levels of insurance cover may be one way of making sure that you do all you can to maximise your income. Insurance for empty properties is one part of that.

Insurance providers and empty properties

It’s a fact of life that insurance companies typically prefer a property to be occupied rather than empty.

The reason is simple – empty properties are typically more at risk than those that are occupied.

Perhaps at first glance this doesn’t seem to make much sense. Clearly, if there is, say, a major natural disaster, then it’s going to happen whether someone’s in the property or not.

Unfortunately though, many forms of risk to your property arise from factors that are potentially affected by its occupancy status.

Empty property risks

Typically an empty property is more at risk across a while spectrum including:

• burglars love empty properties as it significantly reduces the chances of them being disturbed;
• unnoticed minor problems can become cumulative disasters if they are overlooked for long periods – a leaking pipe is perhaps a good example.

This list is certainly not exhaustive and there are other reasons that cause many insurance companies to see an empty property as just simply riskier than one that’s occupied.

That’s why specialised insurance for empty properties exists, whether your property is usually occupied by you or you are a landlord.

When is a property empty?

Insurance providers typically understand that your property may be empty for shorter periods and they don’t expect you to stay in 24/7 just watching like a hawk for things such as leaks!

The exact definitions of insurance for empty properties may vary slightly between individual providers and reading the policy details carefully is always advisable.

Typically though, insurance providers use a definition that any property standing unoccupied for more than 30 consecutive days comes into the category of being empty.

Implications of property being categorised as empty

This isn’t just an abstract debate on semantics.

If you have basic occupied-property buildings and contents insurance, following a subsequent problem you may encounter troubles with your claim if the insurance company find that the property meets their definition of empty and they were not advised of this.

It’s also worth keeping in mind that this may apply to owner-occupiers if, for example, you’ve been out of the country on an overseas work assignment for some months or have a probate property etc.

Insurance for empty properties may perhaps be even more important for landlords where property may stand empty for lengthy periods in between lettings or if you need to undertake renovations etc.

Provision of cover

Vacant property insurance is typically available for properties that are standing empty for a period of time and will give you peace of mind that while it is empty, it is still protected.

This is one way to recognise the importance of insurance for empty properties. The other is when you’re having trouble making a claim. You may wish to think about which one you’d prefer!

What difference does empty property make?

As a landlord, the last thing you presumably wish to see is your property standing empty. While it’s empty, you’re not earning income from it.

However, although it may not be any consolation, insurance companies are typically almost as unhappy as landlords when a property stands empty!

The trouble is, empty properties are typically at higher risk of certain types of problem than those that are occupied. Those problems may include forced entry, burglary and so on.

There are also typically higher risks that a small problem may arise, which is unnoticed and which subsequently causes a major catastrophe. That may include leaks and heating or electrical problems etc.

As a general principle, when risks increase then insurance providers typically charge a little more for protection and need to cover it explicitly in their policies.

That’s why unoccupied property insurance may be important to you if you are a landlord.

And even if you are not a landlord, if your property is standing empty (say due to you working or travelling away from home for a period of time, or maybe where the property is awaiting probate), then vacant property insurance may be worth considering.

When is a property empty?

That’s not always very easy to define. Typically buildings and contents insurance and buy to let house insurance, will use a definition along the lines that if a property stands empty for 30 days or more then it is classed as being unoccupied.

As a landlord, this may easily happen if you’re holding on for a new tenant or have the property empty for repair and redecoration etc. If you have a buy to let property that you’re upgrading, the same thing may apply.

As an aside, this isn’t just an issue for landlords – similar conditions may exist in owner-occupier insurance policies.

If your property has a problem while empty and your policy does not provide protection for unoccupied properties, then your claim may be rejected.

What can be done about it?

It isn’t always easy to grasp the insurance complications around empty properties.

Through our service we can help you understand your requirements in this area and help you find a solution that may be suitable for your needs. Unoccupied property insurance is available online via our easy to use quotation system. Or why not give our professional and friendly staff a call? They will aim to help you find suitable vacant property insurance, quickly and effectively..

• your own home which you leave vacant while working abroad for several months; or
• let to students who go back home during the long vacations;
• in between tenants or undergoing refurbishment;
• a second home which is empty for most of the year; or
• a probate property which is taking a while to sell;

then empty property insurance could be worth a look.

Why is the fact that the property is empty an issue for insurers? Merely going on holiday is not really an issue for mainstream home buildings and contents insurance. But when a property stands vacant for 30 days or more – even if it is an extended holiday – many insurers consider the building to be a higher risk.

Not only is your empty property at greater risk from burglars, but there is also no one around to respond quickly to a flood or fire. Even a little leak left unattended could cause extensive damage, for example. In a let or owner occupied property on the other hand, there is typically someone on site to alert the emergency services or call a professional immediately to deal with the situation.

As with other types of buildings and contents UK cover, it’s important to check what insurance for empty properties relates to. For instance, find out whether fixtures and fittings are included and check what your obligations are. Your vacant property insurer may ask that you have the property regularly checked upon, for example, or that you ramp up your existing security arrangements. You will usually be asked to turn off all the mains supplies for electricity, gas and water etc.
These are all potential ways of helping reduce the risk of something happening to your property while it is not being lived in.

What will affect the price?
The standard things that affect a building and contents insurance quote may also apply to insurance for empty properties:

• location, location, location – if your house is in a low risk area for crime or flooding, the cover could typically be for less than a property in a postcode that bears a higher risk;
• security precautions – have you got the latest, high spec burglar alarms, window and door locks? Technology on window locks moves forward all the time, and if you are getting windows replaced it could be worth bearing this in mind;
• cover – some insurers offer a basic level of cover, others have a bells and whistles policy. When deciding on unoccupied property insurance you need to decide which aspects of the cover are most important to you, and how much you are prepared to pay for them; and
• your own history – whether this is your first property policy or a renewal, an insurer might enquire whether you have made any claims on previous policies. If you have a no claims bonus, why not be rewarded for your responsible home ownership with a discount on insurance for empty properties?

A number of situations can lead to a property becoming vacant for 30 days including:

• a void period between tenants where the property needs to be renovated or redecorated;
• a newly purchased buy to let property that takes longer than the owner expected to let;
• a property whose owner has been sent abroad to work for a long period;
• a property whose owner has died and is taking a while to sell or for a sale to complete; or
• an uninhabitable property that is being renovated by its owners before they move in.

As you can see from the examples above, unoccupied property insurance is not just for landlords. Any type of property owner may find themselves with a vacant property.

Why is the cover different from regular building commercial contents insurance?

The fact that your property is empty means that it may ring alarm bells for some insurers. As such it may stand a higher risk of being broken into, vandalised and of course being damaged by natural “wet” risks like floods and storms. This is simply because no tenant or owner is typically on site to deal with any of those issues.

Accordingly, you may find that unoccupied property insurance is a little more expensive than a normal landlord building and contents insurance or owner-occupier home insurance quote.

As you can see from the list above, it is easy for a let or owner occupied property to cross over into the “vacant” category quite suddenly. If this does happen to you, it is important to inform your insurer if you believe that the property has been or will become empty for 30 days or more, because standard cover is typically excluded if the property stands unoccupied for this length of time.

Is there anything that you can do to reduce the risk?

There are a number of ways that you can demonstrate to an insurer that you have managed the risk of an empty property, which may result in a reduced premium or at least the availability of unoccupied property insurance where none was previously offered. For instance, you could:

• arrange for a regular inspection of the property;
• fit alarms;
• seal windows and doors; and
• turn off or drain heating systems to reduce the risk of pipes bursting.

You may also find that some of these pointers mentioned above may well be obligatory on your part in order to get empty property insurance, so do check what you need to do in order to keep your insurance valid.

How can our service help?

We offer a professional and efficient service to help you find the unoccupied property insurance that suits your property and your budget. You can either use our quote and buy online service; telephone; or contact us online for more information about a selection of policies from a variety of providers. We are always happy to help ensure that you get the most suitable empty property cover you need, and at a competitive price.

You may be tempted to do without insurance while your property is empty but this could be a very false economy indeed. When a property is unoccupied it may be more at risk than when it is tenanted. That’s why insurance for empty properties may seem to be expensive, particularly when this expense cannot be offset against rental income.

So what sort of additional risks apply?

Theft and Vandalism

Signs that a property is empty can act like a magnet for thieves and vandals. These can include obvious things like building tools and materials left lying about, rubbish accumulating in the garden or junk mail sticking out of the letterbox. More subtle indicators could be no lights going on as it gets dark or curtains not being opened or closed.

A stitch in time

If you are in your property and there is a leak of water from a burst pipe for example, you can take immediate action and turn off the water to minimise the damage caused. In an unoccupied property though, the leak could go unnoticed for some time and the resulting damage could be much more extensive and obviously more expensive to put right.

Covering the risks

A basic insurance for empty properties policy can provide essential cover for the basic insurance perils like fire, explosion, floods and earthquakes etc. More extensive cover is also available and costs of claims can be reduced if the property is checked regularly and necessary maintenance carried out. In fact, your vacant property insurance provider may stipulate that under the terms of your cover with them that you meet certain obligations, such as checking on the property on a very regular basis.

Keeping the property looking its best may help attract potential renters too.

Owners’ liability

It may be worth bearing in mind that even if your empty property does not have any tenants, someone could still sue you as a result of an injury that they may have sustained in or around the property. Property owners’ liability protection is an important part of any buy to let insurance policy whether the property is empty or not.

Up to date

Once your property is let again you may want to let your insurance providers know so that any necessary changes can be made to ensure that your cover reflects the fact that your property is no longer unoccupied.

You also may be interested in protecting your property with cover against accidental or even malicious damage by tenants, which is cover that may not be available as part of insurance for empty properties policies. (Do note that not all buy to let insurance providers do provide this element of cover).

Empty properties – a greater risk

Insurance companies don’t like empty properties. The fact is that when empty, your property is at greater risk of break-ins, mindless vandalism and disasters arising from unnoticed troubles such as leaking pipes etc.

For all these reasons, if your property is periodically unoccupied then there is a greater chance you’ll encounter a problem and subsequently make a claim on your insurance policies.

That’s why some insurance policies may not cover your property for certain categories of risk if it is unoccupied. Checking to make sure that your policy does in fact provide insurance for empty properties might be a sensible precaution to take.

Your property is never unoccupied?

It’s possible that you have been lucky to date but sooner or later your property is going to be empty between lettings. You may also have to keep it unoccupied for a period if you need to make repairs or simply re-decorate. In those circumstances, you may be seriously at risk unless you have appropriate vacant property cover in place.

Other specialised risks

Your property is also a business venture because it generates income for you. If it’s out of action because of a problem, your income will disappear. That may be a major blow if you have a loan outstanding on the property – you’ll presumably want to get it restored and back into action as a fast as possible.

That’s not the time to suddenly start asking questions about what your policy does and does not cover!

In particular, it may be worth checking the position with regard to tenant-related risks as well as whether or not you have insurance for empty properties. These may include:

• ensuring that your tenants are covered against accidents and injuries sustained on your property;
• that you are also covered for general public liability;
• tenants that wilfully damage your property, it’s fixtures and fittings or contents (note that only a selected number of buy to let insurance providers offer malicious damage cover);
• the theft of your contents if the property is furnished.

This is not an exhaustive list and it may be useful to take further advice.

In summary, your property has special risks because it is being used for commercial purposes. Making sure that you have insurance for empty properties and which also covers other rental property risks is good business practice. It may end up saving you considerable amounts of money.

Certainly, the vulnerability of an empty house may attract the attention of not only the innocent passerby, but thieves, squatters, vandals and others up to no good. Most of us have seen a stereotypical example of an unoccupied property – the homes that practically advertise the fact that no one is living there because the garden is overgrown, cobwebs have grown across the windows, and there are never any lights on at night.

With empty property insurance, you can have the peace of mind that your property is protected against the unexpected. However, under the terms and conditions of your unoccupied property insurance, you will usually have to fulfil some obligations to your insurer in order to keep your vacant property insurance valid.

These may include things like regular visits to the property (say weekly or bi-monthly); draining down the heating systems; and ensuring you have adequate security measures in place etc.

You should also note that your insurer will generally also expect you to make sure that its being empty is not advertised too obviously!

What might you do?

The measures that might be taken to disguise the fact that the property is empty are largely a matter of common sense, but nevertheless still worth rehearsing:

• The unkempt garden is quite a giveaway, of course, so you might want to consider keeping the grass mowed and the garden generally tidy. If you are unable to do so, it might even be worth employing contractors to do the job for you;
• General maintenance of the property has the twin-fold benefit not only of helping to give the impression that someone is at home, but also preventing small repairs developing into much bigger ones. A slipped roof-tile, for example, might stay hanging over the gutter’s edge for years – or it might equally come crashing down through the conservatory roof;
• A trusted neighbour might be asked to look after a key to the property for you (always handy in the event of an emergency) and asked to enter it in from time to time to open / close the curtains and switch on a light or two. In areas of the house where curtains might not normally be drawn, a simple timer might be set up to switch an interior light on and off again;
• The same trusted neighbour (or even a different one!) might also be asked to park their car in the driveway of your unoccupied property from time to time and especially overnight – if the parking arrangements at their own property are already congested, they’re certainly likely to thank you for the opportunity.

In other words, there are a number of ways in which you might avoid advertising the fact that your property is currently lying idle and empty – your unoccupied insurance provider is likely to expect you to take these and other reasonable steps to do so.