Unoccupied Property insurance
What is Unoccupied Property Insurance?
If your property is unoccupied, empty or vacant, for whatever reason, it can be difficult to get insurance. A standard building policy will not normally remain effective if a property is unoccupied for more than a few weeks, so you must inform your insurer.
A good insurance broker can find specialist cover for unoccupied buildings. Normally insurers will require additional security precautions and limit the amount of cover available, but full cover can be found. Most property owners will require cover for buildings and property owner’s liability. You may also require additional cover for contents or flood.
What should my insurance cover?
Many policies can be extended to include a range of benefits such as:
Payment of fines & penalties
Payment of ransoms & extortion
Cover for lost or disrupted income
Cover for physical injury/damage
The cost of phone hacks
Cost of notifying your contacts
Incidents at your outsourced service providers
Social media risks
If a property is to be unoccupied for a short period, perhaps awaiting sale, you may wish to take cover for just a few months. Annual coverage can be cancelled part way through the policy, but be careful as some policies do not give a refund.
Unoccupied properties are often a target for vandals, arsonists and squatters, so you should seriously consider the security of your property. Due to the increased chance of a claim, you may wish to consider loss recovery insurance.
