Unoccupied property insurance is bought in a hurry, usually because somebody has just discovered that a standard policy has stopped doing what they assumed. It is worth a slower read than it normally gets, because the product trades a narrower set of perils and a heavier set of conditions for cover on a building nobody is watching. Knowing which conditions you have agreed to is the whole of making it work.
The term, and why it is short
Three, six and twelve month terms are standard and monthly extensions are common. The short term is not a limitation, it is the point: most empty buildings are between states, and a twelve month commitment on a property you hope to relet in eight weeks is money wasted. Ask what happens if the property relets or sells mid term, because pro rata refunds are usual but not universal.
The conditions, listed rather than summarised
Inspections at stated intervals with a written record. Heating maintained at a minimum temperature through winter or the water system drained down and isolated. Post removed rather than left to accumulate. Locks and alarms to a specification. Gas and electricity isolated except as required. Sometimes a requirement to remove valuables or to board vulnerable openings. Read them as a list and diary each one, because they are conditions of cover rather than advice.
The perils you may or may not have
Fire, lightning, explosion and aircraft are always present. Storm and flood are usual. Escape of water, theft, malicious damage and accidental damage are frequently available at a higher excess and sometimes not at all, depending on the building and the area. Subsidence is often excluded on unoccupied cover. Compare the peril list rather than the premium, because two quotes can differ by half the risks that matter.
What changes when somebody moves in
The moment the property is occupied, whether by a tenant, a buyer or the owner, it needs the right policy for that state and the unoccupied cover should end. Running an unoccupied policy over a let property is as much a misdescription as the reverse. The transition is the point at which most owners forget to tell anybody, so it belongs on the same checklist as the keys.
Questions people ask about unoccupied property insurance
Can I insure a property that is empty and being renovated?
Renovation beyond minor decoration usually needs a policy written for works in progress, with the contractor carrying their own cover. Tell the insurer the scope before work starts.
Do I need inspections even for a short empty period?
Almost always, and the interval is in the wording. The inspection record is the first thing an insurer asks for on an escape of water claim.
Is subsidence covered?
Often excluded on unoccupied policies, because an empty building with a leaking drain is exactly how subsidence starts unnoticed. Check the peril list rather than assuming.
What if the property relets before the term ends?
Most insurers refund pro rata and switch you to a standard landlord policy. Ask about it before you buy, because a few write the term as non refundable.