A guide to insuring an unoccupied home, building or vacant property

This guide will help those that have been left in the position of insuring an unoccupied home or building, such as a property which has been inherited, subject to probate, unoccupied and under - going renovations, awaiting tenants, or in the unfortunate event that the owner has been taken into care.

Why is unoccupied home insurance so hard to find?

Unoccupied building insurance can very hard to source; the reason for this is because there are very few insurers that cover this type of risk.

Insurers see that an empty property has a higher risk of fire, theft and malicious damage. Coupled with this is the fact that the damage may not be discovered for some time (until the next inspection by the insured or their representative) therefore increasing the possible damage claim to the property, for example, consider the damage which could occur to an unoccupied property which suffers from escape of water from a leaking tap which has been leaking for month.

So what types of cover are available for unoccupied buildings cover?

Basically there are two levels of cover to choose from an insurer. The basic level will cover Fire, Lightening, Explosion and Aircraft claims (you may sometimes get earthquake and subsidence cover included as well) 

Normally this basic cover is offered to properties undergoing renovations. It should really only be offered as a last resort as the chances of a lightening or earthquake claim are remote!

Alternatively you can obtain cover which can include the basic cover and also include accidental damage to fixed glass, escape of water, theft or attempted theft & even malicious damage to the unoccupied property.

This cover is more in line with conventional home insurance and can even be offered to properties undergoing minor repairs such as painting and decorating or the fitting of kitchen units.

So how much will it cost to insure a vacant property?

Each insurance quote is different for an unoccupied property insurance policy, the cost will depend on the level of cover, post code and most importantly the building sum insured (the re-building cost of the property).

It is normally safe to say that this type of insurance will cost more than a standard type of household insurance.

So how can I reduce the cost and get a cheaper quote for unoccupied home insurance?

• Find a specialist insurance broker such as Coversure insurance services. Their expertise will prove invaluable in guiding you through the insurance process. Visit www.coversure.co.uk/huntingdon

• Know the re-build cost of your property, there is little point being over insured, but it is imperative that you are not under- insured as in the event of a claim, insurers have the right to apply the law of average, which means they can reduce your claim by the same percentage that you have under-insured the property.

• Upgrade security at the vacant property and tell your insurers. Security devices such as door locks and key operated window locks and even alarms are now more affordable than before.

• Use your common sense! Stop the free newspapers being delivered, better still block up the letter box. Ask a neighbour to keep an eye on the property and give them your contact details. Visit the property yourself on a regular basis.

• If the property needs only to be on cover for a short period, source an insurance broker who can either offer a short term policy or insurance with the best cancellation terms. Some specialist brokers such as Coversure Insurance can offer interest free direct debit payments, where you only pay for the cover that has been used with no hidden cancellation charges.

Ross Wilkes

Coversure Insurance