This guide will will help those of you that have been left in the position of needing to insure an unoccupied home or building and it covers issues surrounding a range of unoccupied properties, including:
Why is unoccupied property insurance so hard to find?
Unoccupied property cover can be very hard to source; the reason for this is because there are very few insurers that will cover this type of risk. Many take the view that an empty property is at a higher risk of fire, theft or malicious damage. This, and the fact that any damage may not be discovered for some time - perhaps not until the next inspection by the insured – which increases the potential damage to the property, means these are risks they'd sooner not take on.
What types of cover are available for unoccupied properties?
There are two levels of unoccupied insurance cover to choose from:
• The basic level will cover risks from fire, lightning, explosion and aircraft claims (you may sometimes also get earthquake and subsidence cover included as well)
Normally this basic cover is offered to cover renovation properties and it should really only be taken as a last resort as the chances of a lightning or earthquake claim are somewhat remote…
Alternatively, you can obtain unoccupied insurance cover which includes the basic cover plus:
• Unoccupied cover that includes accidental damage to fixed glass, escape of water, theft or attempted theft and even malicious damage to the 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 an unoccupied property?
Understandably each unoccupied property insurance quote is different and the cost will depend on the level of cover, your post code and, most importantly, the building sum insured (the re-building cost of the property).
It is normally safe to say, however, 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 or building insurance?
• Know the re-build cost of your property. There's 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. This means they can reduce your claim by the same percentage that you have under-insured your property
• Upgrade security at the unoccupied property and tell your insurers. Security devices such as door locks, key operated window locks and even alarms are now quite affordable
• 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 unoccupied insurance for a short period, source an insurance broker who can either offer a short-term unoccupied property policy or insurance with the best cancellation terms. Coversure Insurance can offer short-term unoccupied property insurance and can even offer you interest-free direct debit payments, so you only pay for the cover that has been used with no hidden cancellation charges
• Get an unoccupied property quote from a specialist insurance broker such as Coversure. Being experts in the field of unoccupied property insurance means we can help you get the cover you need at a price that won't send your premiums through the roof
If you want our best price for your insurance or just want to make sure you have exactly the cover you need, it’s best to talk to your local Coversure office who will have access to our latest schemes and discounts.
Simply enter your postcode and find the contact details for your local office.