Unoccupied house insurance guide A property empty for longer than the time period stated on your home insurance policy needs home insurance with the best deals and coverage for unoccupied house insurance cover. This specialist type of insurance policy is also known as ‘empty property insurance’ or ‘vacant property insurance’. Unlike standard home insurance policies, specialist unoccupied home insurance will cover a vacant or unoccupied property for three, six, nine or 12 months. There is often the option to extend a policy beyond a year if necessary too. ‘Empty properties are sadly more vulnerable to break-ins and the threat of potential theft or damage to items within the building can result in heartbreaking consequences,’ says Chelsea Shakespeare, household underwriting manager at insurance broker Adrian Flux. ‘Water leaks remain another upsetting and expensive risk that can cause lots of damage – especially during the winter months – as can bad weather which often impacts houses that are left more vulnerable as a result of renovations taking place.’ Follow this extensive Q&A report that explains why you need it, the costs and what it covers. Why do you need unoccupied house insurance? Standard home insurance policies won’t offer adequate cover if a property will be vacant for a long time. If your home, or a property you own, is going to be unoccupied for a prolonged period, it’s important to understand the insurance implications. Image credit: Future PLC There are a number of reasons why a homeowner might leave a property unoccupied or empty. Common reasons include: Working overseas Extended holidays Void periods between tenants Sale-related delays Probate-related delays Away from home health care ‘A property is also often not lived in while renovation works are being undertaken,’ says Chelsea Shakespeare. ‘These may range from minor upkeep and redecoration to full and large-scale refurbishments and both need to be covered accordingly.’ How much does unoccupied house insurance cost? Unoccupied property insurance tends to be more expensive than standard home insurance. This is because vacant properties are considered a higher risk by insurers. Unoccupied properties are more likely to be damaged by: Vandalism Fire Flooding For example, a burst pipe at an unoccupied property could go unnoticed for longer periods which would make the water damage worse. This would probably increase the cost of the subsequent insurance claim. The cost of unoccupied home insurance will vary between providers. Cover and costs depend on a number of factors such as where the property is located, its value, any previous home insurance claims and the level of cover required. If the property has contents, you’ll need to let your insurer know the total value of your possessions for these to be covered too. It is wise not to leave valuables in an unoccupied property. Image credit: Future PLC/ Polly Eltes Do you need unoccupied home insurance when someone has died? A common scenario where you might need unoccupied home insurance is if someone has died. The property will be unoccupied while probate is granted and the family decides on the best option moving forward. That might be a family member moving into the property, the home being placed on the market or it being rented out. ‘Each unoccupied property comes with its own unique circumstances as to why it may be vacant’ says Chelsea Shakespeare. ‘One of the most common is when a loved one has passed away. When someone dies, the role of the executor of their will, who acts in the administration of their estate, is to collect the deceased’s assets, settle their liabilities and then distribute what remains in accordance with the terms of the deceased’s will.’ Alex Milton, at law firm Moore Barlow, says: ‘Executors are personally liable for any mistakes they make whilst administering an estate and any consequential loss that may arise. ‘Executors should protect and preserve the estate.’ ‘This includes making sure that insurance is maintained on estate property. If, for example, there is a fire in an estate property and the executor has failed to maintain valid house insurance, then the executor could be made to pay for the repairs from his or her own pocket.’ Jane Sutherland, partner and solicitor specialising in wills and probate at Nelsons Law, adds: ‘We would usually advise the executor to initially continue with any insurance policy taken out by the deceased that was already in place if possible. However, it is important that the insurers are notified as soon as possible of the deceased’s death and any change in circumstances regarding the property, for example, it is now unoccupied.’ Some insurers will continue cover until the next renewal of the policy or probate being granted. However, there may be conditions attached – normally that the property is internally inspected at least once a week. Alternative arrangements might also be needed to pay on-going premiums as the deceased’s bank account will be frozen once the bank is aware of their death. Image credit: Nick Richards What does unoccupied home insurance cover? Policies vary regarding the level of cover offered. Be sure you read the policy and understand what you’re covered for – and what isn’t covered. Unoccupied home insurance will always include buildings cover. Buildings insurance covers the structure and fittings of a property including: Walls Roof Pipes Fitted kitchens Carpets Flooring A good policy needs to protect you against risks including: Storms Floods Fire Water leaks Theft or attempted theft, Vandalism or malicious damage A more comprehensive policy will also include legal expenses. For example, you might need legal assistance to remove squatters. Another inclusion or add-on is property owner liability. This will protect you against compensation claims raised by third parties who have been injured as a result of the property not being maintained. Some policies will also offer add-ons covering damage due to fallen trees, fly-tipping, and broken windows. How can I get cheaper unoccupied property insurance? Adding some additional security features, such as burglar alarms and decent door and window locks, could help to decrease the cost of your unoccupied home insurance….

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