Unoccupied Property Insurance
A property that is sitting empty carries a different risk profile from one that is occupied. Insurers treat unoccupied properties differently, and in many cases, a home insurance policy will reduce or remove certain elements of cover after the property has been vacant for 30 consecutive days.
If your property is unoccupied, whether undergoing renotation, awaiting sale, subject to probate, between tenancies, or vacant for another reason, it is important to ensure you have appropriate cover in place throughout the period of vacancy. Compare Landlord connects property owners with specialist brokers who have experience arranging insurance for vacant and unoccupied properties.
What Does Unoccupied Property Insurance Typically Cover?
Cover varies between insurers and is usually arranged for a defined period, typically three, six, nine, or twelve months, reflecting the expected duration of the vacancy. Features that may be available include:
Buildings Insurance
Cover for the structure of the building against damage from fire, storm, flood, and other insured events. For unoccupied properties, this is particularly important given that damage can go unnoticed for longer periods. It is worth ensuring the sum insured reflects an accurate rebuild cost rather than the property’s market value.
Contents Insurance
If the property contains furniture, white goods, or other belongings during the vacancy period, contents cover may be available. This is subject to insurer criteria and may vary depending on the nature and value of the items.
Escape of Water and Oil Damage
A burst or leaking pipe in an unoccupied property can go undiscovered for an extended period, potentially causing significant structural damage. Cover for escape of water is a particularly relevant consideration for vacant properties, though it may be subject to conditions – for example, draining down the water system during winter months. A broker can advise on what conditions may apply.
Property Owners’ Liability Insurance
Even with no tenants in residence, a property owner can still be held liable if a third party is injured on or in connection with the property. Cover for property owners’ liability is a consideration for most unoccupied properties.
Legal Expenses Insurance
Unoccupied properties can give rise to legal disputes for example, in connection with contractors carrying out renovation work, boundary disputes, or in rare cases, issues relating to unauthorised occupation. Legal expenses cover may assist with associated costs.
Why Might a Property Be Unoccupied?
There are many reasons a property owner may find themselves needing unoccupied property insurance, including:
- A gap between tenancies while the property is being marketed or prepared
- Renovation or refurbishment works that make the property temporarily uninhabitable
- Probate – where an inherited property is being administered before it is sold or let
- An extended period of absence by the owner, such as working abroad
- A property held as a holiday home that is unlet and unoccupied for extended periods
- A property that has been vacant following the death of an occupant
- A property that has been difficult to let or sell and remains empty for a prolonged period
Why Standard Insurance May Not Be Sufficient
Most home and landlord insurance policies include a vacancy clause, typically requiring the insurer to be notified if the property will be unoccupied for more than 30 consecutive days. After this point, some insurers will reduce cover, apply additional exclusions, or in some cases treat the policy as invalid for certain types of claim.
Common exclusions that may apply to unoccupied properties under standard policies include:
- Escape of water or oil damage
- Vandalism and malicious damage
- Theft (unless accompanied by forced entry)
- Accidental damage
If your property is going to be empty for more than 30 days, it is important to inform your insurer or broker and confirm whether your existing policy remains adequate. If cover is restricted, a dedicated unoccupied property policy may be more appropriate.
Practical Steps to Reduce Risk During Vacancy
Insurers may apply conditions to unoccupied property policies that require certain precautions to be taken. Common requirements or recommendations include:
- Regular property inspections – many policies require the property to be inspected at defined intervals (for example, every 7, 14, or 30 days) and for this to be documented
- Draining down the water system during winter to reduce burst pipe risk
- Maintaining adequate heating where pipes are not drained
- Ensuring the property is secured – doors, windows, and any access points
- Maintaining the exterior appearance of the property to reduce the likelihood of it appearing visibly vacant
- Installing or maintaining working smoke and burglar alarms
Failure to meet the conditions set out in a policy could affect the validity of a claim. A broker will outline what conditions apply under any policy they recommend.
How Long Can You Arrange Cover For?
Unoccupied property insurance is typically arranged for a fixed period, most commonly three, six, nine, or twelve months, to reflect the anticipated duration of the vacancy. If you are unsure how long the property will be empty, it is generally advisable to arrange cover for a longer period than you think you may need, as a policy that expires while the property remains vacant could leave you without appropriate cover in place.
If circumstances change and the property is re-occupied or sold sooner than expected, a broker can advise on whether any adjustment to the policy is possible.
How It Works
Fill in one short form with details about your property, such as its current status, why it is vacant, how long you expect it to remain empty, and what cover you are looking to explore. Specialist brokers will be in touch to discuss your requirements and the options available.
There is no obligation to proceed, and no need to approach multiple providers separately.