A Guide to Insuring an Empty House

Are you leaving a residential property empty for more than 30 days?

You may unknowingly enter a world of higher insurance risks and new, tricky policy conditions.

This guide is your roadmap for navigating the often-misunderstood area of empty house insurance, ensuring you avoid unexpected cover gaps, policy conditions that might catch you out and clauses limiting your coverage.

Insuristic is a specialist that can help you arrange empty property insurance in a couple of minutes online.

Our exclusive products and clear cover explanations are designed to give you the reassurance and confidence you need when insuring an empty property.

In this guide, we will cover:

• How an empty house increases the risk of claims
• When you might need to insure an empty house
• What are the key steps when insuring an empty house

If you understand the risks and want to get a quote or learn more about our policy cover, please visit our Unoccupied Home Insurance or Probate House Insurance pages.

You might think you understand home insurance, so why would it be any different when you need to insure an empty house?

This is a valid question, but the answer lies in the significantly higher risk that empty properties present to insurers. 

If you consider this from the insurer's perspective.  Their typical home insurance customers usually live on the property, rarely leaving it empty overnight except for the occasional holiday or business trip.

However, when a property remains empty for an extended period, typically defined by insurers as being unoccupied for more than 30 consecutive days, several factors significantly increase the risk of loss and damage to the property:

1. Firstly, there is a greater potential for undetected damage.
   1. Issues such as burst pipes, leaks, or electrical faults that could cause a fire, may remain unnoticed for weeks or months in an empty property; and
   2. Delayed detection can result in far more extensive and costly damage than the same issues at an occupied home, where these problems would likely be identified and resolved quickly.
2. Secondly, there is an increased risk of vandalism and theft:
   1. An empty house is a more appealing target for vandals, thieves and squatters. There are no occupants to deter them, and often no immediate reporting of break-ins. Which makes the potential for damage and loss significantly higher.
3. Lastly, there can be a lack of regular maintenance:
   1. If no one is living in the property, routine maintenance tasks may be neglected, resulting in the gradual deterioration of the property and increasing its susceptibility to damage from weather, pests, or general wear and tear.

Due to these increased risks, home insurance policies frequently include specific clauses, limitations, or exclusions that apply when a property is unoccupied for a certain period. This is all designed to limit the risk to the insurer.

Common exclusions are flood, subsidence, malicious damage, theft, and reduced cover for risks like escape of water loss or damage to contents. 

Additional requirements, such as regular inspections, inspection reports, draining water systems, and switching off utilities, are also likely. 

It's easy to overlook the necessity of specialist insurance when a property is temporarily or permanently unoccupied.

Here are several common scenarios where specialist empty house insurance should be considered:

• After the death of the owner:

After the loss of a loved one, the property typically remains unoccupied for some time, often for six months or more.  It is not that uncommon for property to remain empty for longer than twelve months.

This is typical when there is no surviving spouse, and the property enters the probate process, remaining empty even after the Grant of Probate is received, until the property is eventually sold or distributed to the beneficiaries.

Most standard home insurance policies, even some designed for unoccupied homes, may not offer sufficient coverage to protect the executors' liability.

• As an executor or administrator of an estate:

Executors and administrators have a duty to safeguard the assets of the deceased's estate, including any property.

Ensuring the property is adequately insured during the probate process is essential to protect its value and prevent potential liabilities.   You can learn more about these liabilities on our Home Insurance for Executors page.

Specialist probate house insurance, such as that offered by Insuristic, provides the option to include coverage against risks like burst pipes, flooding, subsidence, vandalism, and theft, which standard policies may not cover. 

This is an essential consideration for anyone looking to protect their liability as an executor or administrator.

• When the owner goes into care, leaving the property empty:

When an elderly homeowner moves into a care facility, their previous residence often becomes vacant.

The responsibility to insure the property then falls to someone with a Power of Attorney, or if one has not been arranged by the person who has lost capacity, a Deputy appointed by the Court of Protection.

There is a duty of care and liability associated with incorrectly insuring the property for either role, so it's essential to get this right or face the risk of being significantly out of pocket if a claim is denied or its value reduced.

So, without wanting to keep repeating this, be careful when selecting your insurance provider and ensure you choose a specialist to help protect your liability.

• When the property is empty pending sale:

It is common for people to move into new properties while their previous homes are still on the market, leaving the property vacant for weeks or even months until a purchaser is found.

Clearly, you don’t want to run the risk of uninsured losses that impact your ability to invest in improvements to your new property or, worse, leave you unable to pay the mortgages and bills on both properties.

Messy claims can also delay the sale of the property, thus increasing your costs further.

So, make sure you are happy with the cover you have chosen, which is also with a reputable insurance provider that will not leave you hanging with lengthy claims delays.

• If the property is empty due to renovation:

When a house is being renovated, it can make sense to go on an extended holiday to avoid the dust and mess.

Alternatively, the property might already be empty when it's between tenants.

When this happens, again, you need to consider an unoccupied home insurance provider that is willing to cover you during this period.

Insurers do not need to be informed if the property is being painted and decorated.

However, you usually need to inform them if you are installing new windows and doors, kitchens, bathrooms, etc.

Insuristic clients can arrange building insurance without additional cost during periods of renovation that don’t involve structural changes to the property, such as extensions or when walls are being knocked through, providing the project costs less than £50,000. 

Extensive renovations involving structural changes, such as extensions and room conversions, will require advice and an offline policy. You will need to consider specialist insurance and may also need to insure the materials, works in progress, and liability for damage to your neighbour's property. 

• If you are away travelling or on business for more than 30 days:

If you are away from the property for more than 30 days, you must tell your insurer, as this is usually a clause in your policy.  Failing to do this could result in claims whilst you are away being declined.

Whilst Insuristic’s minimum cover selection is three months, our lack of cancellation charges means you would get a pro-rata refund for unused cover.  So technically, you could insure for less than three months with Insuristic.

Relying on standard home insurance in these situations can leave you financially vulnerable to the impact of uninsured losses.

Searching for a suitable empty house insurance policy is the first step in ensuring the property is adequately insured.

Insuring an empty house requires a slightly different approach than insuring an occupied one.

Here's a step-by-step guide to help you navigate the process:

Step 1: Understand Your Existing Insurance Policy (If Applicable)

• Review Your Current Home Insurance: Thoroughly examine your existing policy documents. Look for clauses regarding unoccupancy, vacancy periods, and any limitations or exclusions that may apply. If unsure, consult your insurer.
• Contact Your Current Insurer: Speak with your current insurer to inform them of the property's vacancy and to understand their stance. They may offer an extension or a temporary unoccupied home insurance policy, or they might advise you to seek specialist cover. Be aware that continuing with a standard policy while the property is vacant for an extended period could invalidate your coverage.

Step 2: Assess Your Needs and the Property's Specifics

• Determine the Vacancy Period: Accurately estimate how long the property will be unoccupied. This is crucial as it will dictate the type of policy you need.  If the property is empty for less than 30 days, your existing insurance is likely to be suitable. 
  • Check your policy schedule as this will usually state how long you can leave the property empty for.
• Identify the Reason for Vacancy: Is it due to probate, renovation, awaiting sale, a second home not currently in use, or another reason? Different reasons may have slightly different insurance considerations.
  • For instance, if you are renovating the property, you might be comfortable with basic coverage; however, if you are liable for the losses, such as when insuring as an executor or with a power of attorney, you may want to consider obtaining as much coverage as possible to protect your liability.
• How long has the property been vacant? Insurers will need to understand this, and many will only quote online if the property has been empty for less than 2 years.
  • Long-term unoccupied properties are often derelict and boarded up, which is not an attractive risk for many insurers.
• Has the property been continuously insured? This is another question that insurers ask. If it hasn't been, insurers may be concerned about someone insuring a property after it has been damaged and suffered a loss in order to immediately claim on the new policy.
  • If the property hasn’t been continuously insured, the underwriter might impose restrictions on certain claims, such as burst pipes, vandalism, and theft, for a specified period.
• Consider the cost of rebuilding the property: Be careful not to underinsure it, which is common since 8 out of 10 properties in the UK are underinsured.
  • It is your responsibility to set an appropriate value for rebuilding the property (this is not the market value, which can sometimes be less than the cost to rebuild).
    • Failing to do so could result in your claim being rejected by the insurer or the payout being reduced, leaving you to cover the difference, which could represent a significant loss. 
  • If you don’t know the cost of rebuilding the property, some providers, such as Insuristic, can quote based on the number of bedrooms in the property and offer a blanket sum insured, which you need to ensure is adequate.
  • Companies like Rebuild Cost Assessment or BCH can provide you with an insurance rebuild valuation to eliminate underinsurance.
  • Check the property’s condition: Are there any obvious issues like boarded-up windows, leaks, damage, or cracks on the walls?
    • Any issues with the property's state of repair must be declared to the insurer before arranging cover.
    • Fix the issues before arranging cover, as this can improve the likelihood of insurers quoting.
• Check the property's security: Many insurance policies will require a specific type of lock on all exterior doors to the property and locks on all accessible windows.  This is asked during the quotation stage, and it is important to get this right as failure to comply with a security condition can invalidate your cover for claims related to a break-in.
• Consider the Level of Coverage Required:
  • What risks do you absolutely need to insure against to avoid financial loss? 
  • Are there any risks you are willing to exclude if you can minimise those risks?
    • For example, you might be fine with excluding escape of water if you have drained the water systems. 
  • Be clear on how much you need to insure the building for (considering the points above).
  • If you are leaving contents in the property, think about how much it would cost to replace them. However, be aware that contents coverage for empty properties usually has a single article limit, typically £1,000, so store high-value, theft-attractive items safely.

Step 3: Research Specialist Unoccupied Home Insurance Providers

• Compare Multiple Quotes: Don't settle for the first quote you receive. Contact several insurance providers to compare their coverage options, policy terms, and premiums.
• Look out for hidden costs: Many insurance providers will charge administration fees and another fee if you need to cancel your policy.  Early cancellations are common as many people don’t know exactly how long they need to insure for.  This is why Insuristic will never charge you a cancellation fee.  Instead you would get a pro rata refund representing any unused cover.
• Check how to make a claim before you buy: When you purchase insurance, having an easily accessible claims service is essential. It's important to research this before you buy. For example, Insuristic provides this upfront; our underwriters offer a claims service that includes advice accessible 24 hours a day, 365 days a year. You can find this information on our How to Make a Claim page and also on our Quote/Policy Schedule.
• Check Insurer Reputation and Reviews: Look for online reviews.  What are their customers saying about their experience buying unoccupied home insurance?  Are they easy to deal with, what is their claims service like, how easy is it to contact them and how quickly do they resolve enquiries.  You will find Insuristic on Trustpilot if you are interested in ours.

Step 4: Obtain Quotes and Review Policy Details Carefully

• Provide Accurate Information: Be honest and thorough when providing information about the property and the reasons for vacancy. Inaccurate information could make your policy invalid.
• Understand the Coverage: Carefully review the policy's coverage, including perils like fire, storm, flood, vandalism, theft, and property owners' liability.
• Check for Exclusions and Limitations: Pay close attention to any exclusions or limitations in the policy. For example, some policies might exclude coverage for certain types of damage if the property isn't regularly inspected.
• Note Any Specific Conditions: Unoccupied home insurance policies often come with specific conditions you must adhere to, such as regular property inspections (e.g., weekly or bi-weekly), maintaining particular security measures, or turning off utilities and water supplies. Failure to comply with these conditions could invalidate your policy.
• Clarify Any Doubts: Don't hesitate to ask the insurer any questions about the policy wording, coverage, or conditions.

Step 5: Choose a Policy and Secure Coverage

• Select the Right Policy: Choose the policy that best meets your needs and offers the appropriate level of coverage for your specific circumstances.
• Review the Policy Documents: Carefully review all the documentation before buying a policy.
• Pay Your Premium: Ensure you pay your premium on time to activate and maintain your coverage.

Step 6: Adhere to Policy Conditions and Maintain Communication

• Comply with Policy Requirements: Strictly adhere to all the conditions outlined in your policy, such as regular inspections and maintaining security.
• Keep the Insurer Informed: Notify your insurer of any changes in the property's circumstances, such as a change in the property's use, vacancy period or any significant events or damage at the property.

Insuring an empty house might seem complex, but by following this guide and getting a quote from Insuristic, you can avoid the pitfalls and adequately insure the property. If you still aren’t sure, you can always start an online chat or contact us, and a member of the team will be happy to help you.