Unoccupied Property Insurance
If your property is set to be unoccupied for a considerable time, you should consider taking out an unoccupied property insurance policy. Doing this will add an extra layer of protection should something happen whilst your house is vacant. If you would like to read more information or learn more about the pricing of business landlord insurance, you can do so here .
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What is Unoccupied Property Insurance?
Unoccupied property insurance provides coverage if your home is set to be empty for longer than the allowed period by your standard insurance policy. Generally, a typical insurance policy will cover your empty home for 30 to 60 days, with the exact period varying between insurance providers. Your claim request could be declined if any incidents take place outside of the authorised period.
If you’re not sure, get in touch with your insurance company to confirm the coverage period.
What does unoccupied property insurance cover?
Like a standard policy, unoccupied property insurance will provide you with financial compensation should something happen to your property when it’s empty. This is usually required because most standard policies will not cover an unoccupied home for long periods.
The policy will cover various types of damage, including:
Fires
Floods
Burst pipes and leaks
Public liability cover
Vandalised property
Legal expenses if you need to remove squatters or trespassers
Theft
Note that insurance companies might not offer all these covers in your policy, so check before taking out a policy.
What are the benefits of this type of policy, and who is it for?
Unoccupied property insurance will ensure that you are financially protected from an array of issues. If squatters take over your empty property, you can rest assured that your policy will cover the costly legal fees. There’s a chance that an incident can happen since you won’t be there to check on any issues. Therefore, having an unoccupied property insurance policy will give you some peace of mind.
There’s a range of reasons why a property needs to be empty for a considerable time. The most common reasons include:
If your property is for sale and you’ve moved into a new home in the process.
You inherited a holiday home that’s not your primary residence.
You’re planning to travel for an extended period.
Your property is set to undergo renovations and is not safe for living whilst construction is ongoing.
You’re waiting on probate.
You’re a landlord waiting for new tenants.
You might go into long-term medical care outside your home.
How long does the policy last?
Most insurance companies will offer you a range of periods to best suit your needs. Typically, these are 3, 6, 9 and 12 months. You choose the policy that will cover the exact period that your standard insurance policy no longer covers your property.
What isn’t covered by unoccupied property insurance?
There are certain situations where the insurance provider won’t approve your claim. Reasons can vary depending on the agreement you have with the company.
Common reasons include:
Damage caused by unforced entry – windows and doors left unlocked allow trespassers to enter without forcing entry.
If contractors cause any damage while your property is empty. Some insurers will not cover the damage.
What is the average cost of this type of insurance policy?
The price you’ll pay will, of course, depends on the provider and agreement you can arrange. However, you should expect to pay around £150 for the unoccupied period. To get an exact quote, it’s always best to contact an insurance company and discuss rates.
There is a range of factors that influence the price; these include:
The property value
The level of home insurance coverage
The property location
The level of security
The level of property maintenance
What should you lookout for when taking out an unoccupied property insurance policy?
If you’re considering getting unoccupied property insurance, there are a few things you should note before settling on a provider.
Try to get as many quotes as possible to compare prices and coverage. You’ll find that insurance companies can be flexible on prices, so the first quote you receive won’t necessarily be the cheapest.
Make sure that your policy covers everything you want to be included. If you don’t thoroughly check the details, you’re opening yourself up to some potentially nasty surprises down the line.
Make sure you correctly judge the policy period so you aren’t paying for coverage you don’t need.
Getting unoccupied property insurance can be a small expense that will pay massive dividends if the worst-case scenario happens. So, it’s wise to get in touch with a provider to check your options.
Learn more about Landlord Insurance here.
Other useful links about business insurance:
Tradesperson Insurance
Stock Insurance
Business Health Insurance
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