Empty property buildings insurance is a specialist insurance cover that is meant to cover properties that are not used regularly. Unoccupied property insurance covers buildings, fittings, or even contents of an unoccupied structure, whereas the typical standard home insurance only covers the property for up to 30 days when the building is not occupied. Such a policy is necessary to safeguard your assets in the event of any risks and to guarantee the security of your money in the event of damage.
This guide discusses what is included in empty property buildings insurance, why it is needed, the most prevalent risks, policy options, and practical advice for property owners in the UK.
Why Standard Home Insurance Doesn’t Work for Vacant Properties
Most standard home insurance covers inhabited houses. Many insurers either limit their cover or cancel that of properties that are not used at all for at least 30 days. This can be explained by the fact that empty properties have a statistically higher probability of losing significant value without detection, due to damage from fire, vandalism, or frozen pipes.
So, in cases where any property is left empty (between tenants, during renovations, or until sold), specialist Buildings insurance for empty property is required.
When Is a Property Classed as Empty?
Insurers typically consider a property to be empty when it has remained unoccupied for 30 or more days. This is applicable in residential buildings as well as in commercial buildings. In other scenarios, properties that have temporarily become vacant and are maintained and visited regularly might still have a standard policy cover. Still, it is necessary to confirm the insurer’s terms before making presumptions.
Core Cover Provided by Buildings Insurance for Empty Property
Empty property buildings insurance normally covers the physical structure of the property, which includes:
- Permanent fixtures, foundations, roof, and walls.
- Other outbuildings, including garages, sheds, and boundary walls.
- Rebuild or repair expenditure after a covered event.
In contrast to regular policies, unoccupied building insurance is a specialist coverage that is based on the risks associated with empty buildings.
Included Common Insured Events
Typical insured events in a building’s insurance for an empty property policy can include:
- Fire, lightning, and explosion.
- Storm and flood damage
- Arson and intentional destruction.
- Leakage of water through burst pipes.
- Sinking and building failure.
There are also optional extensions, such as public liability cover or legal protection, available with some such policies, which vary by insurer.
Increased Risks for Unoccupied Buildings
Unoccupied buildings are more exposed to greater dangers than occupied ones. Risks include:
- Losses due to undetected leakages can take weeks and turn into huge losses.
- More exposure to vandalism, theft, or squatting.
- Failure to take action on storm damage in time.
- Migration of faults, such as electrical or structural faults, is not being located.
These dangers explain the existence of specialist issuance of buildings insurance when needed by empty property and why premiums may be higher than usual.
Who Needs Buildings Insurance for Empty Property?
You might require such insurance when your property is vacant because of:
- In between tenants or waiting to be occupied.
- Renovation or refurbishment works.
- Estate management or probate.
- The sale process in which the owner has vacated.
- Prolonged travelling or foreign residence.
- The sale or lease of commercial premises is pending.
You can be an individual householder or a commercial landlord, and expert unoccupied property coverage can help secure your investment.
Flexibility and Duration of Policy
The majority of insurers provide flexibility in building an insurance policy when insuring empty premises. Typical options include:
- Short-term cover (e.g., 3, 6, 9 months)
- Policies that are renewable on an annual basis.
Your vacancy period will also determine how long you stay. Renovation or sale policies are best suited for short-term use, and annual policies are best suited for long-term non-occupancy or intermittent occupancy.
How Premiums Are Calculated
Buildings insurance for empty property is a premium, and this depends on variables like:
- Location of the property
- Rebuild value (not market value)
- Length of vacancy
- Security measures are in place
- Condition of the property
Homes that have well-secured systems or are inspected frequently can receive low premiums, but high-risk zones or poorly built homes can incur a high premium.
What to Know: Important Conditions and Exclusions
Although empty property buildings insurance is a beneficial cover, it also has significant conditions and exclusions:
- Claims can be abandoned in case the property is abandoned for longer than stated.
- Regular wear and tear or lack of maintenance is usually not an option.
- Cover can be invalidated by failure to secure the building or to conduct the necessary inspections.
- Some policies restrict coverage for specific reasons, such as undetected leakages or squatter.
It is important to know these restrictions to make sure that you still have your policy during the time that you need it the most.
Choosing the Right Unoccupied Property Insurance Provider
In choosing a provider to insure against empty property buildings, the following should be considered:
- Range of cover options
- Customer service and reputation.
- Claims process and support
- Policy flexibility
- Competitive premiums
Hiring a broker can assist you in comparing various policies and finding expert cover that can address your requirements, primarily when the ordinary insurers cannot provide appropriate terms.
Summary: Investment Insurance with Experts
Empty property buildings insurance is an essential insurance policy for any UK-based property owner whose building is empty. The empty property insurance is designed to cover financial losses arising from unexpected circumstances that exceed the coverage of standard home insurance through its customised coverage, flexible insurance terms, and expertise in risk management. Knowing your risks, choosing the right policy, and regularly checking your cover will help you protect your property that is not in use with greater certainty.
