Empty House Insurance: Necessary?

Leaving your house empty for an extended period of time can be risky. The chances of theft go up, and there's a higher risk of structural damage—for example, if a pipe bursts and no one is there to handle repairs, the damage could be worse than if someone were at home. Standard home insurance policies typically cover an empty house for 30 to 60 days. If your home is left unoccupied for longer than that, you'll need to take out unoccupied home insurance. This type of insurance covers vacant properties for between three and 12 months, with the option to extend if needed. It's important to note that unoccupied home insurance is likely to be more expensive than a standard policy because insurance providers see vacant houses as bigger risks.

What is unoccupied home insurance?

Unoccupied home insurance is a specific type of policy for when you leave your home unoccupied for longer than your insurance allows, which is usually 30 to 60 days. With unoccupied home insurance, you can leave your home empty for longer periods, typically up to 12 months.

Unoccupied home insurance is likely to be more expensive than a standard home insurance policy because insurance providers see vacant homes as a bigger risk. Vacant homes are more attractive to burglars, and there's a higher risk of building maintenance issues, such as undetected leaks.

Unoccupied home insurance covers the building and/or contents in properties that are left vacant for 30 days or more. It typically includes protection against property owner liability, storm, flood, or fire damage, escape of water or oil, theft or attempted theft, vandalism, legal expenses, and public liability insurance.

Some common exclusions in unoccupied home insurance policies include unforced entry, renovations or building works, and damage caused by contractors.

The cost of unoccupied home insurance depends on factors such as the property's value, location, security, maintenance, and the level of coverage.

When do you need unoccupied home insurance?

Unoccupied home insurance is necessary when your home is left empty for longer than your standard policy allows. Standard home insurance policies typically cover an empty house for 30 to 60 days. If your home is unoccupied for longer than this, you will need to take out unoccupied home insurance.

Unoccupied home insurance is a specialist type of insurance that covers vacant properties for between three, six, nine, or 12 months, with the option to extend if required. It is more expensive than standard home insurance because vacant properties are considered higher risk. They are more attractive to burglars, and there is a greater risk of building maintenance issues, such as leaks, going unnoticed and causing significant damage.

You will need unoccupied home insurance in the following situations:

• You're doing renovations or building work that involves moving out.
• You're waiting for a property sale to complete.
• You're going on holiday or travelling for an extended period.
• It's a second property or holiday home that you don't normally live in.
• You're a landlord and your property is between tenants.
• You've been taken into long-term medical care.
• You're waiting for probate.

Why do I need unoccupied home insurance?

Unoccupied home insurance is a specific type of policy for when you leave your home unoccupied for longer than your insurance allows, which is usually 30 to 60 days. This type of insurance can cover your home for up to 12 months.

Insurance providers see vacant houses as a bigger risk. Vacant homes are more attractive to burglars, and there is also the risk of building maintenance issues. For example, if there is a leak and no one is there to fix it, the damage could be far worse than if the property were occupied. Other risks include vandalism, fire, and electrics failure.

Unoccupied home insurance covers you for these risks, and some policies also include public liability insurance, which can cover you if damage is caused by a property that you are responsible for. For example, if a roof tile falls and breaks a car window.

If you don't let your insurance provider know that your home is empty for a longer period than is set out in your policy, you could invalidate your home insurance. This means that if you need to make a claim, your insurance provider may refuse to pay it.

What will unoccupied home insurance cover?

Unoccupied home insurance covers your home if it's left empty for longer than your standard policy allows. This is typically between 30 and 60 days, but it's important to check your policy as it can vary. Specialist unoccupied home insurance policies will cover a vacant property for between three, six, nine, or 12 months, with the option to extend if required.

The level of cover you receive will depend on the policy you take out, but you should consider protection against:

• Storm, flood, or fire damage
• Escape of water or oil
• Theft or attempted theft
• Vandalism
• Legal expenses
• Public liability insurance
• Property owner liability

However, it's important to note that unoccupied home insurance does not cover everything. Some common exclusions include:

• Loss or damage when windows or doors are left open or unlocked
• Damage caused by extensions, structural repairs, or contractors
• Escape of water incidents during certain periods, such as between October and April
• Theft incidents, unless all security features are maintained and in operation
• Claims involving money and high-risk items, such as jewellery
• Damage caused by pets
• Damage caused by mechanical or electrical faults

How much does unoccupied home insurance cost?

The cost of unoccupied home insurance varies depending on the insurance company, the specific policy, and the home's risk profile. On average, unoccupied home insurance is about 50% to 60% more expensive than a standard insurance policy for an occupied home. Some estimates suggest that you may pay two to three times as much for unoccupied home insurance. However, the exact cost will depend on several factors.

Factors Affecting the Cost of Unoccupied Home Insurance:

• Property value: The higher the property value, the more it will cost to repair or rebuild, resulting in higher insurance costs.
• Property location: If the property is located in an area with high crime rates or a high risk of natural disasters such as flooding, the insurance price will increase.
• Property security: Improving the security of the property, such as installing security cameras or alarm systems, can help deter burglars and reduce the insurance cost.
• Property maintenance: Proper maintenance, such as insulating water pipes during winter, can prevent damage and lower insurance rates.
• Level of coverage: The more comprehensive the coverage and the higher the level of protection, the higher the insurance premium will be.
• Length of vacancy: Unoccupied home insurance policies typically offer coverage for three, six, nine, or twelve months. The cost may vary depending on the duration of the policy.

It is important to note that unoccupied home insurance is a specialty insurance product designed for properties left vacant for an extended period, usually exceeding the standard policy limit of 30 to 60 days. It is always advisable to review your insurance policy and consult with your insurance provider to determine the specific requirements and costs for unoccupied home insurance.

Frequently asked questions