What is unoccupied home insurance?

If you’re away on vacation or thinking of selling the house, here’s how to protect your home when it’s vacant

What is the definition of unoccupied property insurance?

Unoccupied home insurance will cover homeowners when their house is vacant for a longer period than your normal policy allow. The insurance will typically only cover for your home that is vacant for more than 60 days and if something happens outside the time frame, you’ll not be protected.

If your house is unoccupied for a long time it is more likely that thefts increase. A home that is not occupied also has an increased chance of structural damage, for instance when a pipe breaks and no one is there to fix the issue and the consequences could be more destructive.

Insurance for homes that are not occupied isn’t included in the standard homeowner’s insurance policy. Therefore, you’ll need an additional policy or add-on.

When is it appropriate to have home insurance for unoccupied homes?

There are several typical situations in which you may require empty property insurance. This includes:

In the case of construction work that requires the removal of

In the midst of waiting for a property sale to close

On holiday or traveling for a prolonged period

It’s a second home or a holiday home that you wouldn’t normally reside in

You’re a landlord , and your property is shared between tenants.

We’d recommend that you don’t put your home at risk of not being insured in the event that it is left empty for a prolonged amount of time. It’s best to check with your insurance company whether you’ll be covered after the specified duration and to what extent. If the coverage isn’t enough for you, you should consider non-occupied insurance for your property.

What exactly does insurance for homes that are not occupied protect?

If you’re considering taking out an insurance policy for your home that’s not being used it is recommended to find an insurance policy that covers:

Flood, storm or fire destruction: If a natural disaster occurs during your absence

Water or oil escape If a pipe explodes or leaks in the home

Theft or attempted theft: If someone breaks into or attempts to gain entry into your home and steals your possessions

Criminal damage is done in your absence, you are responsible for the damage.

Legal costs In the event that you have to pay legal fees to removal of squatters from your property, for the trespassers, or for identity theft

The insurance for Public Liability: If the damage is caused by property you are responsible for, for instance, in the event that a roofing tile gets damaged by a fall and damages the car window

Insurance policies vary among companies, and therefore they don’t all offer the same level of protection. Be sure to read the policy’s terms and conditions prior to purchasing.

What’s not covered under insurance for homes that aren’t occupied?

The insurance company that covers your home may not be able to pay claims for these reasons

Unforced entry The act of leaving your windows and doors open or unlocked is a guaranteed way to invalidate an insurance policy for your home since squatters and thieves are able to gain entry into your home without having to force access.

Major construction: Some insurance companies may even deny coverage for the consequences of major work, like the extension of or repairs made to the structure of the home.

Contractors Hired contractors to repair your property while it’s vacant You may not be protected from any damages they cause. Contractors must have their own insurance in place to protect against the damages.

Who do you think unoccupied home insurance is for?

There are a variety of reasons your home could be vacant for a period of time. It is possible that your home might be empty in the event of:

The house is up for sale but you’ve just moved in your new residence

It’s not your primary place to live, it’s rather a vacation home or one that you’ve acquired

You’ve just purchased it, but don’t think of making the move for a few months.

You’re on the road for a long time

You’re a property owner and in the middle of a dispute with tenants

You’ve been placed in long-term medical facilities

The building is under renovation and isn’t safe for people to reside in.

You’re waiting for an order for probate.

How much will unoccupied home insurance cost?

The cost of insurance for vacant properties can differ among policy and provider. The insurance companies look at things like:

Value of property: High-priced items and properties cost more to replace and repair which means you’ll need to spend more money to protect them

Location of your property Location of the property: If your home is located in a location with high crime rates or a significant likelihood of flooding, then the cost of insurance for your property will rise.

Security for your property: Enhancing the security of your home even when it’s not in use will prevent break-ins

Maintenance of your property: Making sure that the pipes in your home are well-insulated in winter will stop water from escaping from your home , the consequences of which could be devastating when left unattended

The level of coverage Coverage: The more policies you purchase and the more extensive the level of protection you get the higher you’ll have to pay in fees.

How long is your house going to remain vacant?

Although standard home insurance typically has a term of a year however, homes that aren’t used for habitation don’t remain empty for a period of twelve months. This is the reason why insurers typically offer home insurance that is unoccupied on policy terms of three, nine, or twelve months.

If you’re thinking of being traveling for a longer period, or in the event of a sudden absence it is possible to extend your insurance also. As an example, if traveling abroad for a vacation and your flights are delayed or if your house sale has taken longer than scheduled.

What happens if it is not possible to inform your service provider that your home is not occupied?

The risk of invalidating your insurance coverage for home if you have to file an insurance claim but don’t inform your insurer that your residence is vacant for longer than specified in the policy’s details.

Claiming on unoccupied home insurance

Check with your insurance provider has any specific guidelines on how to file a claim, for example, if you require to call them right away or if you have to make a police report.

There are other things you need to think about prior to making a claim:

No-claims bonus: Many insurers provide discounts to premiums when you’ve not claimed for some time – but if you do submit an application, you’ll forfeit the bonus, which means your premiums are likely to increase.

Excess: The excess is the amount you have to pay towards an insurance claim before the insurer pays the rest of the bill. It’s not cheap in some instances therefore it’s worth considering whether it’s more cost-effective to hold onto your no-claims reward and cover the damages yourself.