Unoccupied Property Insurance

Unoccupied Property Insurance

There are many reasons why properties may be unoccupied, examples being:

• Unoccupied following completion of construction, awaiting first tenant
• Unoccupied between Tenants
• Residential – During probate following a death
• Awaiting Sale
• During refurbishment

Most property insurance policies include conditions and exclusions relating to unoccupied properties, imposing increased risk management (such as regular visits, maintenance of written visit logs, security of the buildings, drainage of water, isolation of gas and electric, intruder alarms, security of letter-boxes, removal of waste etc) plus limiting coverage (usually limiting to just Fire, Lightning, Aircraft & Explosion risks).

Residential Unoccupied

Specific policies are available for unoccupied residential properties and a choice in levels of cover is often available, typically:

• Bronze – fire, lightning, aircraft & explosion
• Silver – including storm & flood but excluding damage by theft/malicious damage
• Gold – very wide perils including theft & malicious damage

Such cover is typically required in the event of a proposed sale where the last occupants have left or following the death of the occupant – often required by the probate solicitors.

Premiums tend to be higher than an occupied house for obvious reasons and cover can be arranged for short-periods or longer periods with return premiums allowed upon sale or future lease.

Commercial Unoccupied

Typically with a much greater exposure, sum insured wise, these have to be underwritten very carefully case by case – wider cover is often available but risk management is key – physical security, alarm protection, CCTV coverage, regular visits, waste management, access controls, isolation of services (gas electric & water).

Rowlands & Hames have access to a number of insurers with appetite for unoccupied exposures.

Advanced Rent may be available on request should a future leaseholder have committed to a lease, in order to protect loss of future income from rentals that would have been earned had the property not been damaged by an insured peril.

Unoccupied during repairs/redevelopment/works etc

Specialist cover is available during periods of works being undertaken, which allow for cover for the existing structure, works being undertaken, own plant and hired-in plant, employers’ liability and public liability, including contingency cover for self-employed contracators.

Policy limits and exclusions may apply, please see policy wording for full terms and conditions.