Do You Need a House Insurance Unoccupied Property Policy?

If you’re going abroad on holiday and your home is left unoccupied, have you considered the implications of leaving an empty property? Similarly, if you leave your holiday home empty for periods of time you will need to inform our team, as your insurance broker. Stacked up mail and uncut grass can alert burglars to the fact your house is empty. Leaking taps can result in having to make a claim for escape of water; not what you need when you’ve returned home and are met with damage to your property.

That doesn’t mean you can’t leave your home. There are actions you can take when leaving your property unoccupied, which can mitigate the risk of damage or theft while you are away.

Unoccupied property insurance is essential for protecting vacant homes or buildings from various risks that can lead to significant financial loss. It can cover your property for an extended period whereas standard home insurance might not provide a sufficient level of cover. It provides financial protection against damage, vandalism, theft, and liability claims, ensuring that you are not left with substantial expenses.

Here are key reasons why securing unoccupied house insurance is crucial:

Increased Risk of Damage

Unoccupied properties are more susceptible to damage compared to occupied ones. Without regular oversight, issues like leaks, electrical problems, or structural damage can go unnoticed and worsen over time. For example, a minor leak can lead to extensive water damage and mould growth if not promptly addressed. Appropriate unoccupied property insurance can cover damage, potentially ensuring that repairs can be carried out.

Vulnerability to Vandalism and Theft

Vacant properties are prime targets for vandals and burglars. The absence of occupants can make it easier for intruders to break in, causing damage or stealing valuable fixtures and materials. Unoccupied property insurance typically includes cover for vandalism and theft. This is especially important in areas with higher crime rates or where the property is visibly uninhabited.

Liability Coverage

Even if a property is unoccupied, liability risks remain. For instance, if someone trespasses and gets injured on the premises, the property owner could be held liable. Unoccupied property insurance often includes liability coverage, protecting the owner from potential legal claims and the associated costs. This coverage is crucial for safeguarding against unexpected lawsuits and financial liabilities.

Mortgage and Loan Requirements

For properties with a mortgage, lenders often require continuous insurance coverage, regardless of occupancy status. Ensuring the property is adequately insured while unoccupied can help meet lender requirements and goes towards avoiding unnecessary expenses.

Peace of Mind

Knowing that an unoccupied property is insured provides peace of mind to the owner. Whether the property is vacant due to being up for sale, under renovation, or awaiting new tenants, having insurance coverage means you are protected against unforeseen events.

Maintaining Property Value

Insurance coverage helps maintain the value of the unoccupied property by ensuring any damage is repaired and doesn’t lead to further deterioration. This is particularly important if you are planning on selling your home, as its value needs to be preserved.

Actions to Take When Leaving a Property Unoccupied

By taking these steps, you can help ensure your insurance coverage remains valid, reduce the risk of damage or theft, and maintain the property’s condition while it is unoccupied.

Notify Your Insurance Broker

Inform your insurer that the property will be unoccupied. Insurance policies often have specific terms regarding unoccupied properties, and failure to notify them could result in denial of a claim. Check if your policy requires any additional endorsements or changes in coverage for unoccupied properties.

Understand the Policy Terms

Review your insurance policy to understand the conditions and limitations related to unoccupied properties. Policies usually have a defined period after which a property is considered unoccupied (for example, 30 or 60 days). Ensure you comply with any requirements stipulated by the insurer for unoccupied properties.

Secure Your Property

Lock all doors and windows securely. Consider installing additional security measures such as alarms, cameras, and motion sensors to deter potential intruders.

Maintain Your Property

Arrange for regular maintenance and checks. This includes lawn care, snow removal, and general upkeep to ensure the property does not appear neglected. Have someone check the property periodically to ensure everything is in order and to address any issues such as leaks or damages.

Utilities and Systems

Turn off non-essential utilities (for example, the water supply) to prevent potential damage from leaks or burst pipes. Keep the heating system on at a low setting in colder months to prevent pipes from freezing. Depending on your policy, you might be required to do this by your insurer.

Remove Valuables

Remove valuable items from the property or secure them in a safe location. This minimizes the risk of theft.

Additional Coverage

Consider purchasing additional coverage if your existing policy has limited coverage for unoccupied properties. This might include specialised unoccupied property insurance.

Evaluate whether you need coverage for specific risks such as vandalism, theft, or water damage.

Inform Neighbours or Neighbourhood Watch Groups

Inform trusted neighbours or neighbourhood watch groups that your property will be unoccupied. They can help keep an eye on the property and alert you to any suspicious activity.

Inspect Regularly

Schedule regular visits to the property or have a trusted person do so. This helps in identifying and addressing issues quickly, maintaining the property’s condition.

Documentation

Keep records of all actions taken to secure and maintain the property. This documentation can be valuable in case of an insurance claim.