Unoccupied House Insurance: Everything You Need to Know

What is Unoccupied House Insurance?

Unoccupied house insurance, also known as empty property insurance, provides protection for a home that is vacant or empty. It covers damage or losses when no one is living in the property full-time.

Standard home insurance policies often exclude or restrict coverage for unoccupied homes. But empty property insurance gives tailored protection when a house is not lived in.

Like regular home insurance, unoccupied house policies cover risks such as:

• Fire, smoke, explosion
• Theft, vandalism
• Storm, flood, snow damage
• Water damage from burst pipes or leaks
• Falling trees or debris
• Subsidence

But empty property policies also include key protections like:

• Malicious damage by squatters or intruders
• Damage from burst pipes when no one is around to spot leaks
• Accidental damage cover

Unoccupied house insurance provides cover for both the building itself and any contents left inside like furniture or fittings.

Why You Need Unoccupied House Insurance

There are many common situations where a property may end up temporarily vacant:

• Between tenants – Gaps in tenancies are inevitable for rental properties or investment homes. Standard landlord insurance often excludes unoccupied periods, so specific empty property cover is required.
• Preparing for sale or renovation – It takes time to handle probate, prepare a vacant property for sale after a bereavement, or carry out renovation works. Empty house insurance bridges the gap.
• Secondary homes – Holiday homes or crash pads only used occasionally need protection during vacant spells when not in use.
• New home purchase – There can be a period of vacancy between exchange and completion when buying a new property before you move in.

As you can see, empty homes face many risks when unoccupied like fire, theft, vandalism, bad weather damage or water leaks. Having insurance protects your valuable property investment if the worst happens.

What is Covered by Unoccupied House Insurance?

Unoccupied home insurance covers risks similar to standard policies but with key enhancements tailored for vacant properties.

Fire Damage

Fire is one of the major dangers for any building, but especially vacant properties which are often targets for arson attacks. Unoccupied policies fully cover any damage caused by fire, including:

• Fires from faulty electrical wiring or appliances
• Gas explosions and resulting fires
• Wildfires spreading to the vacant property
• Arson and deliberately set fires by intruders
• Damage from smoke, soot, and ash residue

Complete rebuilding costs for fire damage are covered, including professional cleaning to remove smoke odor and stains.

Theft and Vandalism

Empty buildings are magnets for vandals, squatters, and thieves looking to steal metals and fittings. Unoccupied house insurance covers:

• Damage caused by forced entry, such as broken windows and doors
• Damage caused by squatters occupying the property
• Graffiti sprayed on the walls and exterior
• Missing appliances, fixtures, and fittings stolen by thieves
• Repairs needed due to vandalism and malicious damage

Locks will also be replaced if keys are stolen in a burglary.

Extreme Weather Damage

If struck by storms, floods, heavy snow, or fallen trees, vacant properties can suffer immense damage when no one is present to make repairs quickly. Policies cover:

• Interior and exterior damage from extreme wind, rain, snow, or hail
• Costs to make the property watertight after storm damage to the roof or windows
• Flooding damage if water enters the building
• Fallen trees or branches damaging the roof, guttering, or vehicles

Water and Oil Leaks

Left unchecked, burst pipes, leaking tanks, or appliance leaks can destroy a vacant home. Unoccupied policies cover:

• Damage from leaking appliances like dishwashers or washing machines
• Burst pipes and cracked water tanks flooding the building
• Broken toilet cisterns continually running and overflowing
• Damage from leaking oil tanks or radiators

Including rebuilding costs if installation faults cause leaks.

Subsidence

Ground movement and subsidence can destabilize foundations and damage the structure. Insurance covers:

• Cracks to walls, floors, ceilings from ground subsidence
• Doors or windows sticking from shifted foundations
• Structural repairs needed to stabilize the property
• Professional surveys to assess damage causes

Subject to survey results in some high-risk areas.

Malicious Damage

Deliberate damage by angry squatters or vandals is covered, such as:

• Smashing appliances, sanitary ware, walls, windows
• Ripping out fittings and cables
• Damage from graffiti etching

Even if the culprits cannot be identified.

Accidental Damage

Some policies offer additional protection for unforeseen mishaps like:

• Workmen damaging the property during maintenance visits
• Wind blowing a shed into the house
• Damage during home inspections

Check your policy terms for any exclusions.

Adequate sums insured should be set at the full rebuild cost for the building, and the replacement cost of any contents left inside like carpets or white goods.

Types of Insurance Policies for Empty Properties

Different policy options exist to insure vacant homes for varied scenarios:

Short Term Unoccupied Cover

Covers a property for a temporary vacant period of 30, 45 or 60 days typically. Useful for gaps between tenancies or renovations.

Provides protection for high risk short-term voids when the property is undergoing changes. Premiums are lower than annually policies.

Extended Unoccupied Cover

For vacancies exceeding 60 days, extended cover of 6, 9 or 12 months can be purchased.

This provides protection for major renovations, a property in probate or other extended periods of inactivity. Premiums are higher than short term.

Flexible Unoccupied House Insurance

Instead of a fixed vacancy period, flexible cover allows you to actively occupy and vacate the home sporadically as needed when it is a second home or weekend cottage for example.

The flexible nature means you don’t have to time cover to align with occupancy. Convenient for fluctuating usage.

Add-on to Existing Insurance

Add an unoccupied cover to your existing standard building & contents insurance for frequent vacancies as an endorsement.

This avoids switching policies whenever the status changes. It may also protect your no-claims bonus.

Emergency Unoccupied Cover

Short-term policies for as little as 7 or 14 days cover the immediate void between exchanging contracts and completion when purchasing a property for example.

Helpful in bridging new owner liability risks. Typically only fire, theft and third party covers are included for this high-risk period.

Specialist insurers offer vacant property policies going beyond standard insurance restrictions. Always opt for a tailored, unoccupied policy over a regular insurer.

What Factors Affect the Cost of Unoccupied House Insurance?

Premiums for empty property insurance depend on several criteria:

• Length of vacancy – The longer a property is unoccupied, the more expensive it is to insure. 12 month policies cost more than 30 days.
• Location – Inner city and urban areas cost more due to increased risks like burglary and vandalism.
• Property type – Detached and rural properties are cheaper than flats and terraced houses to insure.
• Age & condition – Older, poorly maintained buildings cost more than modern homes in good repair.
• Security – Minimum standards like door & window locks apply. Upgraded security can reduce premiums.
• Claims history – Previous claims or damage will increase your premiums. A clean claims record gets the best price.
• Sums insured – The higher the amount covered for buildings and contents, the more expensive the policy.
• Insurer – Some providers specialise in unoccupied property insurance and offer competitive pricing.

Top Tips to Get Cheap Unoccupied House Insurance

Here are some tips to get lower premiums for empty property cover:

• Choose a higher voluntary excess, such as £500. This reduces the insurer’s risk and your premiums.
• Cover only essential contents like white goods or carpets. Remove high value items like jewellery.
• Opt for conservative sums insured – don’t over-insure the building and contents.
• Consider 30 days unoccupied cover rather than annual policies if possible.
• Install a burglar alarm and CCTV system to get security discounts.
• Make sure all doors and windows have minimum standard locks before vacancy.
• Carry out repairs to ensure the property is wind and watertight before leaving it empty.
• Pay annually or by direct debit to benefit from insurer discounts.
• Get quotes from several specialist vacant property insurers and compare.

Why is Unoccupied House Insurance Important?

Leaving an empty home uninsured is risky – damage and losses could cost you many thousands of pounds. An unoccupied property faces multiple perils:

• Fire – An empty home is more at risk of fire from arson, electrical faults, gas leaks or wildfires.
• Theft – With no occupants, vacant homes are a magnet for thieves, particularly metal thieves.
• Vandalism – Squatters and vandals often target empty buildings to cause damage and graffiti.
• Weather damage – Storms, floods or fallen trees can wreak havoc if no one is present to make repairs quickly.
• Water leaks – Pipes are more likely to burst and cause immense damage when leaks aren’t spotted early in an empty building.
• Squatters – Properties can become occupied by squatters who damage the property and are difficult to evict legally.
• Disrepair – Buildings deteriorate rapidly when unmaintained if vacant for long periods.

Without insurance, repairing this damage can cost you dearly. Specialist unoccupied property insurance provides tailored cover to mitigate these risks.

Comprehensive vacant home policies from expert insurers allow you to relax, knowing your empty property is protected while you search for tenants, handle a probate, or carry out renovations.

Claims Process for Unoccupied House Insurance

Claiming your unoccupied house insurance policy involves key steps:

Contact Insurer Immediately

Notify your insurer as soon as possible after any loss or damage occurs. Provide details of what happened and the type of claim. Prompt notification is required within a set timeframe outlined in your policy, usually 7 or 14 days.

Submit Evidence

You’ll need to submit evidence to support your claim. For a burst pipe this may include photos of the damage and invoices for repair work done. For theft it would mean submitting a police report.

Work with your insurer’s claims team to put together the required documentation. Keep copies of everything you submit.

Allow Inspection

The insurer will likely send a loss adjuster or claims investigator to inspect damage before approving the claim. They will assess the cause and extent of damage.

Allow access for inspection visits and cooperate fully with the insurer during the process. This helps ensure your claim is processed smoothly.

Factors Affecting Payouts

The policy terms, evidence provided, and cause of damage all impact claim payouts. The adjuster will check the damage is covered under your policy wording. Not every peril like wear and tear may be included.

Full cooperation in providing documentation and access for inspections is key. Insurers look for evidence of negligence or fraud which could invalidate the claim, so the process may take some time.

Tips Before Vacating a Property

Taking steps before leaving a property empty helps minimize risks:

Drain Down Pipes

Drain the water system by turning off mains water, flushing toilets, and pouring antifreeze in traps to prevent burst pipes in cold weather.

Remove Valuables

Take high-value portable items like jewellery and electronics offsite. Leave minimum furnishings needed.

Regular Inspections

Schedule regular weekly or fortnightly inspections of the property. Check for water leaks, squatters, pest infestations or vandalism.

Notify Mortgage Lender

Inform your mortgage provider that the property will be temporarily unoccupied. They may impose extra conditions.

Alert Local Council

Councils often charge 150% council tax on empty homes. Notify them of the vacancy status to correctly calculate tax.

Inform Neighbours

Give neighbours or caretakers your contact details for any issues. They can keep watch for suspicious activity.

Managing Risks and Maintenance for Unoccupied House Insurance

When a property is left unoccupied for an extended period, it requires proactive maintenance and risk management:

Maintain the Exterior Appearance

Keep the gardens, yards and exterior of the home well-maintained, even when vacant. Overgrown vegetation or piles of mail are signs no one is around.

Ask neighbours to help by collecting mail and packages. Hire a gardener service for regular upkeep. Make the home appear occupied.

Regulate Internal Temperature

In cold seasons, set the central heating to come on periodically on low power to maintain above 10°C inside. This prevents icy conditions and burst pipes.

In hot weather, ventilation is needed to prevent overheating and damage. Don’t shut off utilities entirely.

Install Security Systems

Sensor motion lights around the perimeter, CCTV covering approaches, and a monitored burglar alarm system help deter unwanted visitors.

Ensure sheds are locked. Keep all external doors and windows securely locked or boarded up if necessary. Display alarm signage.

Manage Utility Bills

Have utility bills sent to your primary address. Arrange for utilities to remain connected at minimum supply levels to keep the vacant property serviced.

Set up automatic payments so bills stay up to date. Appoint someone to read the meter if needed.

Allow Regular Ventilation

Without heating or occupation, dampness and mould growth are risks. Open windows periodically to thoroughly ventilate and air the vacant building.

Consider installing humidity-controlled air vents if vacant long term. Prevent musty odors taking hold.

Handle Ongoing Paperwork

Set up mail forwarding to receive post destined for the empty house at your main address. Check it regularly for important correspondence.

Appoint someone to manage paperwork like council tax, building insurance, and service bills that will continue arriving.

Alternatives to Unoccupied House Insurance

Leaving a property vacant poses risks. But there are alternatives to unoccupied building insurance that may be suitable depending on your situation:

Employ a House Sitter

For longer-term vacancies of several months, consider hiring a house sitter. Having someone live in the home full-time avoids it being classified as empty and removes the need for specialist unoccupied cover.

Vet sitters thoroughly – the home and contents remain your responsibility. Draw up a detailed agreement on duties, damages liability, and payment. Sitters are often cheaper than paying unoccupied premiums.

Use a Property Guardian Firm

Specialist guardian companies can arrange trusted tenants to temporarily occupy the home as guardians. This provides security, maintenance, and avoids vacancy.

Guardians are licensed and background checked for suitability. Agree a monthly license fee that is normally below market rental rates. The firm handles contracts and property management.

Invest in Top Security

You could invest heavily in measures like CCTV, alarm systems, exterior lights and defensive planting to make the property as secure as possible when left vacant.

Around-the-clock monitoring and rapid response to any perimeter breaches also helps. High security reduces risks substantially but does not remove liability.

Accept the Financial Risks

Leaving a property completely uninsured while vacant is an option, but one with substantial financial risks that must be understood:

• You personally cover all costs for any damages, thefts or liability expenses. These could easily run into tens of thousands of pounds.
• Not having required building cover may place you in breach of the terms of your mortgage contract.
• Local authorities can prosecute owners who allow buildings to become dangerous or derelict.

Unless you have deep resources, specialist unoccupied property insurance remains the prudent choice to mitigate risks like fire, floods and vandalism when vacant.

What To Do After Making an Unoccupied House Insurance Claim

After you’ve started the claims process on your unoccupied property policy, there are important next steps to take:

Cooperate Fully with the Insurer

Work constructively with your insurer’s claims department and loss adjuster. Respond promptly to queries and information requests. Make yourself available for site inspections.

Being difficult or evasive can delay or jeopardize your claim. Document all exchanges and keep copies.

Do Not Dispose of Damaged Property

Keep any damaged items or materials until given permission by your adjuster. Sometimes inspectors need to examine damaged goods. Disposing early can again hurt claims.

Take detailed photos capturing damage before any clean up or repairs.

Get Repair Quotes

Obtain quotes from reputable contractors for any repairs covered under your policy. Send these to your adjuster. They will approve acceptable quotes.

Make Emergency Repairs

You can make essential emergency repairs to prevent further damage. For example, boarding up broken windows. Save all invoices and receipts.

Avoid Talking Liability

Don’t discuss liability with anyone. Don’t sign any third party paperwork agreeing you were at fault. Admitting liability can invalidate claims.

Keep Records

Track and document everything related to the claim. All correspondence, contractor quotes, repair invoices, and claim-related expenses.

Follow Payment Instructions

Once claim is approved, follow all guidance provided by your insurer for collecting payouts. They may issue checks for repairs and replacements.

Ask About Additional Assistance

Discuss your situation with the insurer. See if they offer other services like arranging accommodations while repairs occur.

Stay engaged throughout the claims process. Your diligence will facilitate fast, fair settlement of your unoccupied property insurance claim.

Frequently Asked Questions About Unoccupied House Insurance

Some common queries about insuring empty properties:

What’s the difference between unoccupied and empty house insurance?

There is no difference. Unoccupied home insurance and empty property insurance are the same thing – specialist cover for a vacant property.

Does contents insurance cover an empty property?

Standard contents policies usually exclude or restrict cover for unoccupied homes. Always get specialist vacant contents cover.

What risks are typically not covered by unoccupied house insurance?

Pre-existing damage, wear and tear, loss of value, damage from pets, are often excluded. Check policy terms.

Can I get unoccupied house insurance while renovating?

Yes, you can insure a property while renovating, but inform your insurer about the works beforehand.

Will empty property insurance cover theft without signs of a break-in?

No, evidence of forced entry is typically required on unoccupied policies to claim for any theft or damage.

Do I have to notify the insurer when my empty house becomes occupied again?

Yes, you must inform them it is no longer vacant to amend the policy back to a standard occupied policy.

Does an empty home need to be inspected before getting insurance?

Some insurers may request an inspection survey if the property has been vacant for a very long period.

What are the consequences of not having insurance on an empty property?

You will have to cover any costs for damage or loss yourself if the vacant building is not insured.

Can I get a discount by adding security to an empty home?

Yes, installing an approved alarm and other security measures can qualify you for a lower premium.

Get Protected with Unoccupied House Insurance

Empty properties require specialist protection that standard home insurance does not offer. Unoccupied house policies provide tailored cover to safeguard your vacant property from damage and loss.

With comprehensive vacant building and contents cover from a leading insurer, you can relax knowing your empty home is protected while unoccupied. This covers all the risks like fire, theft, vandals and burst pipes that vacant properties face.

Make sure to follow tips like installing CCTV and an alarm to get cheaper premiums. Comparing quotes from specialist providers ensures you get a competitive price.

Don’t take any chances by leaving your empty home uninsured during renovations, a probate process or between tenancies. The financial risk is just too high.

With the right unoccupied house insurance policy in place, you can have peace of mind that your property investment is covered while vacant before it becomes occupied once again.