Why is empty property cover needed?

Any existing buildings insurance you may have on your property will usually be based on the fact that it is inhabited, or has workers there. It does not allow for extended periods of unoccupation.

For example, with most residential (ie. home and landlords) buildings insurance policies, typically the insurance is valid for up to 30-45 consecutive days of unoccupancy before the cover may become reduced or even void.

After this period of time (which will be detailed with your policy documents and may vary depending on the insurance provider), your property is deemed to be more liable to risks. For example:

• an empty property is a more likely target for burglars or squatters;
• something such as a small water leak may go unnoticed for weeks on end, potentially causing extensive damage; etc.

Unoccupied property insurance covers these additional risks that your existing buildings cover typically does not.

Need to know

When you have traditional buildings insurance in place, you have certain obligations to meet in order to keep your cover valid (for example, the annual servicing of your boiler / central heating system). This also applies when you have insurance for a vacant property.

While the actual obligations may vary depending on your insurance provider, typically you (or a representative) will be obliged to make regular, logged checks on the property.

In some cases, you may be obliged to drain down the water system and turn off the gas / electricity (this will depend on the time of year as well – if there is likely to be frost, then you may be required to keep the heating on at a low temperature).

It is important you know what these obligations are.

Summary

If your residential or commercial property is going to be empty for a period of more than 30-45 consecutive days, then:

• speak to your existing insurer;
• if they agree to keep the cover running on “standard terms” note that this may only be basic cover and may have many exclusions;
• find out what these exclusions are;
• if you do need extra protection to cover the period of unoccupancy, then speak to a specialist such as ourselves;
• don’t forget to make sure you understand you obligations under your insurance policy for the period that your property is empty. While most of these things may be common sense stuff, knowing exactly what your insurer expects from you means you won’t experience problems further down the line should you need to make a claim.

If you require clarification of any of the above points, then please feel free to contact us at the Property Insurance Centre.

Registered Property or Land Information for England & Wales