What is vacant property insurance?

Any property can become vacant at any time under many different circumstances. When a property is vacant, a standard home insurance policy will generally only provide coverage for up to 30 days. This is when one should get a void property insurance policy to keep their asset properly insured against risks like fire, storm damage, theft, etc.

There can be a number of reasons why a property may become vacant. The property could be a recent purchase by a landlord and is undergoing renovation prior to renting or selling. The property owner may have moved and their current property has been left empty until a new buyer is found. The property owner may be building a new extension and has decided to move off his property while construction is taking place. Whatever the reason, it’s still crucial to make sure the vacant property is sufficiently insured. If there is an outstanding mortgage on the building, the lender will insist on some form of insurance coverage on the premises.

There are specialist insurance companies and brokers in the UK who cater specifically to the needs of an owner with a vacant building. Insurers and brokers who offer vacant property insurance quotes will usually have extensive knowledge on this subject and can help with risk management advice. Under a void homeowners insurance contract, the terms and conditions will differ from those of a standard homeowners insurance policy. Ask your adviser to analyze them in detail. There could be conditions at the locks, how the water is left and how often the facility needs to be visited, etc. These conditions will vary from insurer to insurer.

Typically a property can be vacant for 3-6 months, but in certain scenarios it could be vacant for a year or even longer. If the property owner is sure that the property will not be vacant for more than 3-6 months, some insurers will offer a short-term policy. A short-term vacant home insurance policy can also be purchased online from some insurance companies. The property may be vacant, but as the property owner you still have a duty and care to treat the premises as if there were no insurance coverage in effect.

Some basic rules to minimize the risks of your vacant property include making sure all accessible windows and external doors are securely closed, shutting off the water supply and drain system, installing an alarm system if budget allows. Also periodically visit the property to clean any poles and keep the grass cut. Give the property a look that says it’s not vacant. Install timer switches so lights turn on and off at random times.

Some insurers will also convert the empty homeowners insurance policy to a rental property policy if you decide to rent the premises during the term of your policy. Or it could become a standard home insurance policy if you move yourself. Insuring a property that is vacant is essential and expert advice is crucial to ensure that the level of coverage you get meets your exact needs.