The possession of empty property, be it a family home, investment building, renovation project, or inherited estate, has its own risks. Normal home insurance usually ceases to cover any claims after a long duration when the property has been left empty, usually 30 days or more, depending on the company. Empty property specialist buildings insurance covers all types of fire and weather damage, as well as vandalism and theft of your asset, and ensures that your property is safe and within the mortgage and legal regulations.
This guide will discuss building insurance for empty properties, the main cover features, the common exclusions, cost considerations, and how to get the best empty property insurance to meet the requirements.
What Is Buildings Insurance for Empty Property?
Empty property buildings insurance refers to a specialist insurance that protects properties that have been empty for a long period. It is not like any other insurance policy since it takes into consideration the vulnerability of empty buildings to risks, including untraceable leaks, vandalism, burst pipes, or storm damage.
Conventionally, most of the regular home insurance policies start to limit or cancel cover after an approximate of 30 consecutive days of unoccupancy. Specialised empty property insurance will guarantee that you will be covered for a longer vacant period.
When Is a Property Considered Unoccupied?
The insurance companies usually assume a property to be vacant when someone has not been staying in the house for a period of 30 consecutive days. This may include:
- Homes between tenants
- Renovated properties.
- Estates in probate
- Homes awaiting sale
- Second homes that were abandoned over a long period.
The property can no longer be covered with a standard insurance once it is determined that it is not occupied, and you will be required to take out a specialist policy that covers unoccupied property.
What Does Buildings Insurance for Empty Property Cover?
Core Coverages
Buildings insurance for empty property is usually inclusive of the following:
- Structural cover: Protects the main building, permanent fixtures, patios, driveways, and boundary walls against significant damage.
- Fire, lightning, explosion: These basic dangers are typically commonplace.
- Weather conditions: Storm, flood, and snow weight insurance, and other external damages.
- Malicious damage and theft: This is crucial in the long term for multiple vacant buildings.
- Escape of water: protects against the leakage and water damage of unattended systems.
- Liability insurance: This includes the legal expenses in case of an injury to a third party at your place.
Other policies have optional extras like accidental damage, subsidence, and cover during renovations in progress.
Differences Between Standard and Unoccupied Buildings Insurance
Normal building insurance presupposes habitual occupancy and thus does not take into consideration other outstanding risks of an empty house. As a result:
- There are policies that are standard and will cut cover or terminate all cover altogether when the home is not used for more than one month.
- Expert vacant property insurance is offered with extended vacant periods of cover and additional risk cover.
- Standard insurance can impose mandatory checks or certain security needs that cannot be used in vacant houses that are not occupied for a long duration.
Specialist empty property insurance is developed to address such challenges.
Short-Term vs Long-Term Policies
Two options will generally arise when it comes to choosing building insurance on an empty property:
Short-Term Cover
- Policies lasting 3, 6, 9, or 12 months.
- Applicable to properties where the property is being sold, or between tenants, and where there are short-term renovations.
- Usually, refunds are pro-rata in case you cancel in advance and do not make any claim.
Long-Term Cover
- Cover on an annual basis or multi-year basis on properties that remained vacant permanently.
- Appropriate for portfolios or investment assets whose occupancy dates are not predictable.
Factors That Affect Insurance Costs
Building insurance for empty property is based on a number of outstanding factors:
- Place of the property: Property in the high-crime or flood zone is usually charged higher rates.
- Type and value of the building: The bigger and more complicated buildings are more expensive to insure.
- Measures that ensure security, alarms, CCTV, and frequent checks can lower the premiums.
- Duration of vacancy: The longer the vacancy, the more it is likely to cause risk and consequently higher premiums.
- Cover quantum required: Full cover, inclusive of the costs of accidental damages and liability, is more expensive than basic fire and FLEA cover.
How to Choose the Right Policy
To take appropriate building insurance on empty property, one will have to carefully compare:
- Evaluate your risk: You need to know what type of risks your property is exposed to when empty.
- Compare quotes: Insurance brokers and comparison services have the ability to reveal competitive pricing.
- Review exclusions: Make sure that your policy includes such important perils as escape of water, vandalism.
- Check inspection: There are insurers that demand regular visits to the property in order to maintain the cover.
- Check rebuild cost sum insured: It is important to ensure that the coverage amount is up to date with the prevailing rebuild costs to prevent underinsurance.
Standard Exclusions to Be Aware Of
Even expert empty property insurance may omit:
- Willful destruction by possessed persons.
- Wear and tear
- Some natural subsidence without evidence of causation.
- Allegations that are not followed by inspection protocols.
- Destruction cost by pests or infestation when reported as a deteriorated condition.
It is important to read the policy wording thoroughly before making a commitment.
Practical Tips for Empty Property Owners
To ensure maximum security and minimum risk during the times that your property is unoccupied:
- Develop a strong security system, such as locks, alarms, and motion sensors.
- Ensure consistent property checkups and report the same.
- Always leave the heating on during the colder seasons to prevent a frozen pipe.
- Take off all the contents or any valuables that are not covered by an insurer.
- Inform your insurer in time in case of a change in occupancy.
Conclusion
The possession of an empty property may prove profitable enough financially, but it is also accompanied by a lot of dangers when left unguarded. Empty property buildings insurance is a necessary service that gives you a sense of security, secures your investment, and complies with legal and mortgage regulations.
By knowing the available cover options, costs, and usual exemptions, and by selecting the right policy, landlords, homeowners, and investors will be able to make rational choices that will safeguard their assets. Never accept quotes and terms of policies without comparing them with those of specialist unoccupied property insurance to be sure that you get the cover that suits your situation.
