Unoccupied Homes: Insurance Options

Unoccupied home insurance is a type of insurance policy that covers your home if it's left empty for longer than your standard policy allows. This is usually between 30 and 60 days, but it's important to check your specific policy to be sure. Unoccupied home insurance can cover vacant properties for longer periods, typically offering three, six, nine, or 12-month policies, with the option to extend if needed. This type of insurance is designed to mitigate the increased risks associated with unoccupied homes, such as theft, vandalism, fire, and water damage.

What is unoccupied home insurance?

Unoccupied home insurance is a type of insurance policy that covers your home when it's left empty for longer than your standard policy allows. Standard home insurance policies typically cover an empty house for 30 to 60 days. However, unoccupied home insurance can cover vacant properties for up to 12 months or more, depending on the provider.

Unoccupied home insurance is designed to address the increased risks associated with vacant properties, such as theft, vandalism, fire, and water damage. These risks are often excluded by standard home insurance policies or may be subject to specific conditions. For example, some policies may require you to drain water systems, switch off utilities, or install certain locks.

Unoccupied home insurance can be useful in various scenarios, such as when you're travelling for an extended period, renovating your home, or waiting for a property sale to complete. It ensures that your home remains protected even when it's unoccupied for an extended period.

The cost of unoccupied home insurance can vary depending on factors such as the property's value, location, security measures, and the level of coverage. It's important to note that unoccupied home insurance is typically more expensive than standard home insurance due to the increased risks associated with vacant properties.

When considering unoccupied home insurance, it's essential to carefully review the policy documents and exclusions to ensure that you have adequate coverage for your specific needs.

When do you need unoccupied home insurance?

Unoccupied home insurance is required when your home is left empty for longer than your standard policy allows. This is typically between 30 and 60 days, but it's important to check your specific policy to be sure. If your home will be unoccupied for longer than this period, you will need to take out a specialist unoccupied home insurance policy.

There are several situations in which you might need unoccupied home insurance:

• Renovations or building work: If you're planning to carry out extensive renovations or building work on your property, you may need to move out while the work is being done. This could include anything from structural repairs to extension projects. In this case, you would need unoccupied home insurance to cover the period during which the property is vacant.
• Waiting for a property sale to complete: If you've already moved out of your previous home but are waiting for the sale to be finalised, your property would be considered unoccupied. This is a common scenario that often requires unoccupied home insurance.
• Extended holiday or travel: If you're planning to go on an extended holiday or travel for a long period, your home will be left unoccupied. In this case, unoccupied home insurance can provide peace of mind and protect your property while you're away.
• Second home or holiday home: If you have a second home or a holiday home that you don't occupy full-time, it may be considered unoccupied by your insurance provider. In this case, you would need unoccupied home insurance to ensure it's protected during the periods when it's vacant.
• Landlords between tenants: As a landlord, if your rental property is vacant and you're waiting for new tenants to move in, it's important to have unoccupied home insurance in place. Standard home insurance policies typically don't cover unoccupied properties for extended periods.
• Medical care or hospitalisation: If you or someone who lives in the property needs to go into long-term medical care or hospitalisation, and the property will be left unoccupied, unoccupied home insurance can provide the necessary coverage.

It's important to note that insurance providers consider unoccupied properties to be at higher risk of damage, theft, and vandalism. Therefore, unoccupied home insurance is designed to provide specialised coverage for these risks.

What does unoccupied home insurance cover?

Unoccupied home insurance covers properties that are vacant for an extended period—usually over 30 to 60 days. This type of insurance is necessary because standard insurance policies often restrict cover or even automatically cease to be valid when a property has been unoccupied for a certain period.

The level of cover provided by unoccupied home insurance depends on the policy taken out. Some common features of unoccupied home insurance policies include:

• Storm, flood, or fire damage
• Escape of water or oil (including water from a plumbing or heating system)
• Theft or attempted theft
• Vandalism or malicious damage
• Public liability insurance (covering claims against you if someone is injured on your property and you are deemed at fault)
• Property owner liability (for example, if a tree from your property falls and damages your neighbour's house)
• Legal expenses (for instance, for the removal of squatters or trespassers, or for personal identity theft)

It is important to note that unoccupied home insurance policies typically have exclusions. Some common exclusions include:

• Unforced entry (if windows or doors are left open or unlocked)
• Major works or structural repairs
• Damage caused by contractors

Unoccupied home insurance exclusions

Unoccupied home insurance is a specific type of policy for when you leave your home unoccupied for longer than your insurance allows. This is usually between 30 and 60 days, but it's important to check your policy to be sure. Unoccupied home insurance policies typically cover a vacant property for between three, six, nine or 12 months, with the option to extend if required.

Every policy has exclusions, so it's important to read the terms and conditions. Here are some common exclusions for unoccupied property insurance:

• Unforced entry: If a door or window is left unlocked and your home is burgled, your insurance provider will not accept your claim.
• Renovations or building works: If you're doing structural work on the property, damage is usually not covered.
• Contractors: If you hire a contractor, they should have their own insurance in place. Damage caused by contractors is typically excluded from unoccupied home insurance policies.
• Escape of water: Some policies will not cover water damage if it occurs during a certain period, for example, 1 October to 1 April (inclusive).
• Theft: If your home is unoccupied for more than 30 days, theft incidents may not be covered unless all security features (e.g. locks and alarms) are maintained and in good working order.
• High-risk items: Claims involving money and high-risk items (e.g. jewellery) may be excluded.
• Gradual damage: Damage that occurs gradually, or due to wear and tear, or failure to fix a known issue, may not be covered.
• Design or workmanship: Damage caused by faulty design or poor workmanship may be excluded.
• Damage caused by pets: This type of damage is typically not covered by unoccupied home insurance.
• Mechanical or electrical faults: The cost of repairing or replacing items following a mechanical or electrical fault may not be covered.

It's important to note that these are common exclusions, but specific policies may vary, so it's crucial to carefully review the terms and conditions of your unoccupied home insurance policy to understand any exclusions that may apply.

How much does unoccupied home insurance cost?

The cost of unoccupied home insurance varies depending on several factors. While it is challenging to provide an exact figure, it is generally understood that insuring an unoccupied house is more expensive than regular home insurance. This is due to the increased risks associated with an empty property, such as a higher likelihood of burglary and undetected maintenance issues.

Several factors influence the cost of unoccupied home insurance:

• Property Value: The value of the property and its contents will impact the cost of insurance. More expensive properties will generally cost more to insure as the cost of repairs or rebuilding in the event of damage will be higher.
• Level of Coverage: The extent of protection provided by the insurance policy will affect the price. A higher level of coverage will typically result in a higher premium.
• Property Location: The location of the property is a significant factor. If the property is situated in an area with high crime rates or a high risk of natural disasters such as flooding, the insurance cost will likely increase.
• Property Security: The security measures in place at the property can help deter burglars and reduce the risk of theft. Installing security features, such as locks, CCTV, and burglar alarms, can make the property less risky in the eyes of insurance providers and may result in lower insurance costs.
• Property Maintenance: Proper maintenance of the property, especially during winter, can help prevent issues like escaped water from damaged pipes. Insulating water pipes and maintaining the roof and guttering can reduce the likelihood of claiming, thereby keeping insurance costs lower.
• Duration of Unoccupancy: Unoccupied home insurance policies are typically offered for three, six, nine, or twelve months. The longer the property is expected to remain unoccupied, the higher the insurance cost is likely to be.

It is worth noting that unoccupied home insurance is designed for properties that are left empty for longer than the standard home insurance policy allows, which is typically between 30 and 60 days. If you anticipate your property being unoccupied for an extended period, it is crucial to inform your insurance provider and consider unoccupied home insurance to ensure adequate coverage.

Frequently asked questions