Unoccupied Property Insurance
An empty building is not a quieter version of an occupied one. It is a different risk. An occupied property benefits from problems being identified quickly; an empty property may not. A leak, a break in or a small fire in an occupied building is dealt with in minutes; in an empty one it runs until somebody happens to visit.
That is why standard policies narrow once a property passes a stated period, often 30 or 45 consecutive days, although the period varies by policy. Restrictions may apply to theft, malicious damage, escape of water and accidental damage, which can significantly narrow the cover available on a building that is now more exposed to all of them.
Unoccupied property insurance exists to cover the building on proper terms for that state, in exchange for conditions: inspections at stated intervals, services isolated, the building secured and any letterbox sealed. These conditions form an important part of maintaining the intended cover.
We can advise owners, executors, developers and agents on insuring empty property, whether it is a void between tenancies, a house in probate, a building awaiting refurbishment or a commercial unit that has not let.
Common claims and risk exposures
The exposures that produce claims in this trade, rather than a generic list.
Water running unnoticed
A significant source of loss for empty properties. A failed joint or a frozen pipe releases water that runs for days or weeks, saturating floors, ceilings and structure. In an occupied building the same failure is a bucket and a plumber.
Squatters and unauthorised occupation
An empty building that looks empty attracts occupation. Beyond the damage, removal takes time and legal cost, and services are frequently reconnected unsafely by whoever moves in.
Metal theft and stripping
Lead flashing, copper pipe, cabling and boilers are taken from empty buildings, and the damage done to reach them routinely exceeds the value of the metal. Roof damage during a lead theft then admits water for as long as it goes unnoticed.
Arson and fly tipping
Empty buildings attract deliberate fire setting, particularly where they are visibly vacant and unsecured. Rubbish accumulating against the building is both a fire load and a signal that nobody is attending.
The property nobody realised was empty
A tenant leaving early, a probate that drags on, or a commercial unit that simply does not let. The building becomes unoccupied without a decision being taken, and the policy narrows at a date nobody noted.
The cover we arrange
We arrange insurance around the property, its use, construction, occupancy and ownership structure. The cover available will depend on the individual risk and the terms offered by insurers.
Buildings on unoccupied terms
The structure insured on a basis written for an empty building, rather than a standard policy operating under its restriction clause. Typically fire, lightning, explosion and aircraft as the core, with wider perils available on conditions.
- Written for the building's actual state
- Core perils always included
- Wider perils available on conditions
- Sum insured on a reinstatement basis
Extended perils where conditions are met
Theft, malicious damage, escape of water and accidental damage can often be added back where inspections, security and isolation of services are in place and evidenced.
- Theft and malicious damage
- Escape of water where systems drained
- Accidental damage where available
- Conditional on inspection records
Property owners liability
Liability continues while a building is empty, and in some respects increases: an unsecured building that a child or a trespasser enters is still the owner's responsibility.
- Injury to trespassers and visitors
- Damage to neighbouring property
- Limits typically £2m or £5m
- Continues throughout the void
Removal of occupiers and clearance
Some policies include or offer the legal costs of removing unauthorised occupants, and the cost of clearing what they leave behind. Worth asking about on a building expected to stand empty for a long period.
- Legal costs of removal where included
- Clearance after unauthorised occupation
- Boarding and re securing
- Not universal, ask specifically
Cover while works proceed
Where the property is empty because it is being refurbished, the position changes again: contract works and the contractor's own insurance come into play alongside the empty building cover.
- Existing structure during works
- Contract works for the project itself
- Contractor's liability verified
- Hot work conditions during the job
What an underwriter will ask
Having these to hand shortens the process considerably, and usually improves the terms.
- How long the property has already been empty, and how long it is expected to remain so
- Why it is empty: between tenancies, probate, awaiting sale, refurbishment or long term vacant
- Security: locks, boarding, shutters, fencing, alarms and whether anything is monitored
- Inspection arrangements: who visits, how often, and whether visits are recorded
- Whether water, gas and electricity are isolated, and whether the system has been drained
- Condition of the roof and whether the building is weather tight
- Contents remaining in the building, including anything attractive to theft
- Any history of break in, occupation, arson or metal theft at the address
What affects the cost of your insurance?
The main factors insurers consider when assessing the premium.
Expected length of the void
A six week gap between tenancies is rated very differently from a building empty for two years awaiting a decision. Insurers price the exposure they expect rather than the one that exists today.
Security and inspection regime
The strongest lever available. Weekly inspections with records, good physical security and monitored alarms will widen both the perils offered and the insurers prepared to quote.
Location and visibility
A building that is obviously empty in a quiet area rates worse than one in a street with activity. Overgrown grounds, accumulated post and boarded windows all advertise the state of it.
Condition and services
A weather tight building with services isolated and the system drained is a far better risk than one with a failing roof and live water. Both are within the owner's control, which is why insurers ask about them first.
Conditions and exclusions to consider
Terms vary between insurers, so treat these as the questions to ask rather than a description of any one policy.
Inspections not carried out or not recorded
Where cover depends on inspections at stated intervals, the record is what proves compliance. An owner who visited but kept no record is in a much weaker position than one who logged each visit with a date and a photograph.
Escape of water where systems were not drained
Water damage cover on an empty property is usually conditional on the system being drained or the heating maintained at a set temperature. In winter this is the condition most often breached and the claim most often declined.
Theft of metal in some wordings
Lead, copper and cabling are specifically restricted by a number of empty property insurers, particularly on buildings with a history of it. Read the position rather than assuming theft cover includes the fabric.
Works carried out without notification
Starting a refurbishment on an unoccupied policy changes the risk materially: contractors, hot work, open roofs and materials on site. It needs agreeing in advance, not mentioning at renewal.
Common questions
At what point does my normal policy stop covering an empty property?
Usually after thirty or forty five consecutive days, but the number is stated in your own policy rather than being standard. Past it, theft, malicious damage, escape of water and accidental damage typically fall away, leaving fire and a few core perils.
Do I really have to drain the water system?
If you want escape of water covered through the winter, usually yes, or alternatively maintain heating at a stated minimum temperature. Frozen pipes in an empty building are one of the most common and most expensive claims on this class, which is why the condition exists.
How often do inspections need to be?
Commonly every seven or fourteen days depending on the insurer and the perils covered. Record each one with a date and photographs, because at claim stage the question is not whether you visited but whether you can show it.
The property is empty because we are refurbishing it. Is that the same thing?
No, and it needs telling. A building undergoing works has contractors, hot work, materials on site and often an open roof. It needs contract works arrangements alongside cover for the existing structure, and the contractor's own insurance needs checking before they start.
How do I get a quote from True Risk Solutions?
Call 01304 262880 and speak to a broker, or email info@truerisksolutions.co.uk with what you do, what you need cover for and a phone number with the best time to call, and a broker will call you back. We need a phone number to quote, because the cover and the price depend on questions that are quicker to answer on a call than by email.
Speak to a specialist who understands your industry
Tell us about your business and the work you undertake, and we will come back to you with cover options built around it. Call 01304 262880, or email us with a phone number and the best time to call and a broker will ring you back.