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Unoccupied Property insurance

Unoccupied Property Insurance requirements

B. Portwood & Co Ltd offer cheap unoccupied property insurance on an empty or vacant house or home.

Possible reasons for needing unoccupied property insurance

The previous owner may have died and the unoccupied property is now up for sale so that the proceeds are added to the estate. It is the responsibility of the executors to ensure that there is insurance on the empty house in place.
The unoccupied property may have just been purchased. Insurance is needed by a new landlord who has not yet found a tenant for the house and is empty. In this case the property may become occupied after a few weeks - or remain vacant for a longer period. There is a need for unoccupied property insurance until the new tenant moves in
The property may be just unoccupied between tenancies. When the current insurance expires and the insurer may not wish to insure the building.
The unoccupied property may need renovation before becoming suitable for a tenant. The insurers may need details of the type of renovation and the estimated period before quoting.
The unoccupied property may have been purchased with the intent that the owner will move in at a future date. Usually after repairs have been done, or the owner has sold their old home and insurance is needed to cover this period.

For a quotation on unoccupied property insurance for business and commercial premises - Click Here

Difficulties obtaining unoccupied property insurance

Direct companies do not like offering insurance for unoccupied properties because they perceive the risk to be substantially greater.
The unoccupied property may be let in the future on a commercial basis. Many house insurance companies do not wish to cover properties let out and so will not cover them. Nevertheless it is worth contacting your current house insurance provider to see if they will provide cover if your main property is with them.
Insurance premiums are relatively high as there are greater risks attached to unoccupied property that is empty
- There is not usually someone in so if damage does occur to the property then it may not be spotted for some time and additional damage may occur.
- Unoccupied property is often vandalised - bricks thrown through windows, burning rags pushed through the letter-box. This affects the insurance premiums.
- Squatters may move into the property.

Risk Management - Protect the Buildings, reduce claims - and insurance premium!

Companies providing unoccupied property insurance, will normally only do so if the insured is willing to help reduce the chance of a loss - this is known as risk-management.

Many insurance companies insist on regular checks on the property. Arranging a regular inspection of the empty property either directly or by a trusted agent.
Insurance companies may insist on turning off the central heating in the property or ensuring that it is on permanently to reduce the risk of burst pipes
Some contracts of insurance require Sealing off letter boxes in the home and boarding up windows to reduce vandalism.

Limitations of insurance cover

Insurance on the property may be restricted to 'Fire Lightning, Explosions and Aircraft' - FLEA cover
Check to see if the insurance coverage for the 'wet perils' is included. These include damage to the property by storm, tempest, escape of water.
Check if insurance covers malicious damage to the property.
Some insurance companies offer a range of options so that a wider range of perils may be covered. Our insurance quotation system provides these quotes with summaries of cover.

Summary

Cover is provided under unoccupied property insurance against some specific perils. These include damage to the property caused by fire, lightning, explosion, earthquake and aircraft impact - Often known as 'FLEA'. The better contracts may extend insurance to cover the 'wet perils - storm, tempest, flood and escape of water.

There are many reasons why a property may become vacant and insurance is needed - death of the owner and the executors/ administrators require cover, property bought as an investment that needs substantial renovation before it is inhabitable and passes all the required tests before renting out, or merely between tenants when the policy falls due for renewal.

Property owners must realise that a traditional home insurance will not suffice in these circumstances and a specific policy is required. There is usually a requirement that the property is made secure - letter box sealed, maybe windows boarded up and to reduce the probability of the central heating system breaking down, the hot water system being turned off and drained or, alternatively, left switched on constantly at an ambient temperature sufficient to prevent pipes freezing in extreme cold weather and then leaking when the thaw arrives.

As insurance brokers, B Portwood & Co Ltd have placed many such risks on cover. We have agencies with a plethora of insurance companies and our experienced staff can help you with your enquiry. May we remind purchasers of unoccupied property insurance of their obligation to disclose material facts at the inception of cover, at renewal date and when circumstances change. Failure to comply may invalidate cover on the property.

Our quote system for unoccupied property insurance provides quotes from several different companies. Clients should check to see the level of cover provided (FLEA, Full excluding 'wet perils' or full cover. Since repair costs could be substantial consideration should be given to paying slightly more for better cover. Our staff are only too willing to discuss requirements if necessary.

Finally a note about short term insurance - policies are normally arranged for 12 months yet frequently the property is not left unoccupied for this length of time - a new tenant may move in or it maybe sold to complete the estate or even the owner may move in. In such eventualities the insurance may be better off cancelled and a new contract effected - providing better cover with the change in occupancy. We can arrange short term insurance for three or six months but in many cases it is cheaper and better to arrange an annual policy and cancel it when needed. The only proviso is that if a claim occurs on the property whilst on cover there would be no return of the premium paid.

B. Portwood & Co also offer cover on other types of property insurance: e.g. landlords buildings insurance

Please call us on 0844 8262616 for further assistance if needed.