Can You Insure an Empty Property in South East London?

There are certain times where you may need to insure an empty property, such as if you have just purchased a buy-to-let but you don’t have tenants moving in yet as you are completing renovations. Another scenario is during void periods, after one tenant moves out and there is a gap between new tenants moving in.

During these situations, landlords will still require insurance cover to protect their property from fire, floods and other risks. In some cases, specialist insurance may be required if you leave your property empty, even for a short term period.

If you are a landlord in Surrey Quays, Deptford or Canary Wharf wondering what to do about insurance for an empty property, this guide will have the answers you need.

What Is Empty Property Insurance?

Empty property insurance, or unoccupied property insurance, provides buildings insurance and contents cover when a property is left empty for longer than your standard insurance policy allows. The cover provides protection against risks such as fire, flooding, attempted burglary, vandalism and burst water pipes.

Unoccupied properties are regarded as a higher risk to insurers, as there is nobody living in the property to identify issues, such as a leaking pipe. Also, empty properties are generally more likely to be targeted by burglars or vandals. For these reasons, insurers won’t provide cover for properties left empty for over a specified time limit, under their standard cover. Specialist empty property insurance would be required instead.

While empty property insurance may fell like yet another cost of being a landlord, it’s important to have it in place to guard against vacancy periods and property depreciation.

When Do You Need To Insure An Empty Property?

If you already have an insurance policy for the property, the first step is to check the terms and conditions to see what limitations there are around how long the property can be vacant without invalidating the cover. The period allowed varies from one insurer to the next but is typically between 30 days and 60 days.

There are several different scenarios where landlords may need to insure an empty property:

• Extended void periods – If there is a longer void period than your standard home insurance policy covers. Whether you are struggling to find tenants or your next tenant isn’t moving in for a while, depending on the void period length, you might require empty property insurance.
• To complete renovations – If you have just bought or inherited property and need to do renovations before tenants move in.
• Waiting for probate – If you have inherited a property and are waiting for probate to go through, the house may be empty for a long term period.
• Extended holidays – Although less common with buy-to-let properties, if occupants go on an extended holiday, you might need to take out unoccupied house insurance.

What Does Empty Property Insurance Cover?

The level of cover can vary but most unoccupied home insurance covers the following:

• Flood
• Fire
• Theft
• Burst pipes/escape of water
• Storm damage
• Vandalism and squatters
• Theft

Some insurance will also include liability cover, which could be needed if somebody was injured on your property. Legal expenses for removing squatters can also be included.

What Does Empty Property Insurance Not Cover?

The most common exclusion is damage or theft as a result of unforced entry. In other words, if the property is not secure, for example, not locked, empty property insurance would not cover claims for damage or theft.

Public liability and legal expenses are not included in all types of empty property insurance, so you should always check whether this is included before taking out a policy.

How Much Does It Typically Cost?

Unoccupied property insurance generally costs more than standard insurance for occupied properties due to the higher level of risk. The longer the property is unoccupied, the higher the insurance will be. Typically, it costs around £200 – £250 for 30 – 60 days’ cover and over £300 for over 60 days cover.

How To Reduce The Cost Of Unoccupied Property Insurance

If you want to try and reduce the cost of unoccupied property insurance, it is often possible to lower it by reducing the risk through installing security measures. For example:

• Installing alarms or CCTV
• Choosing a lower level of cover
• Installing high quality locks on windows and doors
• Increasing voluntary excess on your policy

You might also want to remove any valuable items from the property and make sure that someone is checking the property on a regular basis to look for any issues.

Feel You Know How & When To Insure An Empty Property?

If your property is left empty for an extended period, always check the terms of your insurance policy to see whether you require specialist unoccupied property insurance. Having problems finding tenants? We can help to avoid long void periods in between tenancies by finding tenants in areas including Canada Water, Lewisham and Bermondsey.

Get in touch if you would like to find out more about our letting services.