Where a house is left unoccupied for a period of at least 30 days and is not used for any purposes then the owner needs to take out an empty property insurance policy. Most conventional building insurance plans will have occupancy clauses in their policy wordings. Some insurers allow up to 60 days but for the majority of home insurers the maximum length the home can be empty for is 30 days. Failure to adhere to this clause can lead the insurer to reject any claim or part of a claim if an incident happens when this clause has been breached by the policyholder.
Obviously this left a gap in the market place and hence speciality insurers and underwriters developed the empty property insurance product. Numerous reasons exist why property owners need this type of cover. Listed below are several reasons why this solution came about;
- Landlords with rental properties are usually empty between lets and sometimes for an extended period.
- If you are planning on major home improvements and or extension, then this could lead to the property being empty for a long period.
- Houses in probate always seem to take a long time to sort out and thus require the need of an empty property insurance policy.
- Houses for sale, sometimes they sell instantly but in other cases it may well take up to a year or more.
- Property owners that have gone in to care but still want to retain their house also have a need for this product.
The most common perils covered by this type of policy include fire, lightning, earthquake, explosion and aircraft (including objects dropped from aircrafts). This is often abbreviated to FLEEA cover within the insurance broking community. However, there are providers who offer a wider range of perils under the empty property insurance umbrella. This is subject to you and your property meeting the insurers underwriting criteria. Typical wider perils include theft, vandalism, flood and escape of water risks etc.
Most policies do have certain conditions that the policyholder needs to adhere to. These do’s and don’ts are very important and you must ensure that you understand these endorsements to the letter.
If the property is under going major changes such as load bearing walls are being change or an extension is being erected then you must declare this material fact to your UK empty property insurance provider. Some insurers will not offer any cover on buildings where structural work is being carried out or the premises are boarded up. If at the time of policy inception there is no building or refurbishment work being carried out but at a later stage you decide to erect a small extension to the side of the home then you must notify of this fact to the insurers at that time. Failure to do so could invalidate any subsequent claims. You have a duty to inform the insurance company of any changes to circumstances throughout the policy period.
Most empty property insurance policy wordings will also have an inspection clause, where the policyholder or an authorised representative of the policyholder needs to inspect the premises. Usually weekly or fortnightly but do check your documents to confirm the exact terms of this clause. Also most insurers will insist on 5 lever mortise locks on all external doors and window locks. Most double glazing doors and windows are fine.
If you are having building work done on the empty premises then any damage caused by the contractors will be excluded and any claims arising due to this must be claimed against the contractors public liability insurance policy. Most professional tradesman have insurance cover to protect their businesses.
The most frequent and costly claims for empty property insurance companies is that of water damage through escape of water from a burst or leaking pipe. If your policy includes this risk then most likely the insurer will insist on the water and heating system to be drained down during the warmer months. However, during the colder months they usually require the heating on with a minimum temperature maintained at 15 degrees.
There are a few ways you can get empty property insurance quotes, by completing online forms or by speaking to professional UK insurance brokers that specialise in this niche field.
