If you’re away on vacation or thinking of selling the house, here’s how to protect your home when it’s vacant
What is the definition of unoccupied home insurance?
Unoccupied home insurance will cover the homeowner when the house is vacant for a longer period than your normal policy allow. It is only covered when your home is vacant for more than 60 days and if something happens outside the 60-day period, you’ll be protected.
If your house is unoccupied for a long time it is more likely that thefts increase. A home that is not occupied also has an increased chance of structural damage, for instance in the event that a pipe explodes and no one is there to fix the issue and the consequences could be more destructive.
Insurance for homes that are not occupied isn’t included in the standard homeowner’s insurance policy. Therefore, you’ll need an additional policy or add-on.
When is it appropriate to have home insurance for unoccupied homes?
There are several typical situations in which you may require insurance for your property that is not in use. This includes:
If you are doing construction work that requires the removal of
Are you waiting for the sale of your property to be completed
On holiday or traveling for a long time
It’s a second home or a vacation home you wouldn’t normally reside in
You’re a property owner and your property is rented out to tenants.
We’d recommend that you don’t put your home at risk of not being insured in the event that it is left empty for a long duration of time. It’s recommended to confirm with your insurance company whether you’ll be covered after the specified duration and to what extent. If you don’t have enough coverage for you, think about unoccupied home insurance.
What do unoccupied property insurance policies protect?
If you’re looking to purchase an insurance policy for your home that’s not being used it is recommended to find the policy that will cover:
Fire, flood, or storm destruction: If a natural disaster strikes during your absence
Exit of oil or water If a pipe explodes or leaks within the home
Theft or attempted theft: If someone breaks into or attempts to break into your house and steals your personal belongings
Criminal damage is done in your absence, you are responsible for the damage.
Legal costs In the event that you have to pay legal fees to removal of squatters, the trespassers, or for identity theft
Insurance for public liability: If the damage occurs due to a property that you are accountable for, such as when a tile on the roof gets damaged by a fall and damages the window of a car
Insurance policies vary among companies, and therefore they don’t all offer the same amount of coverage. Check the policy’s documents carefully before purchasing.
What’s not covered by insurance for homes that aren’t occupied?
The insurance company that covers your home may not cover claims for these reasons
Unforced entry The act of leaving your windows and doors open or unlocked is a guaranteed method to cancel an insurance policy for your home since squatters and thieves are able to gain entry into your home without having to force access.
Major construction: Some insurance companies may even deny coverage for the consequences of major construction projects, such as the extension of or repairs made to the structure of the home.
Contractors Hired contractors to repair your property while it’s vacant You may not be insured for any harm they cause. Contractors must have their own insurance in place to protect against the damages.
Who can unoccupied house insurance be used for?
There are many reasons your home could be vacant for a period of time. It is possible that your home could be vacant if:
It’s up for sale, after you’ve moved into your new residence
It’s not your primary place for residence. It’s it’s a house for a holiday or that you’ve been given
You’ve just purchased it, but don’t think of making the move for a few months.
You’re on the road for a long time
You’re a property owner and in the middle of a dispute with tenants
You’ve been placed in long-term medical treatment
The building is under renovation and isn’t safe for people to reside in.
You’re waiting for an order for probate.
What is the cost of unoccupied house insurance cost?
The cost of insurance for vacant properties can differ among policy and provider. Insurance companies consider factors such as:
Value of property: High-priced homes and possessions are more expensive to replace and repair which means you’ll need to spend more money to pay for them.
Location of the property Location of the property: If your home is located in an area that has high crime rates, or has a high likelihood of flooding, then the cost of insurance will increase.
Security for your property: Enhancing the security of your home during empty times will prevent break-ins
Maintenance on your property: Making sure the pipes in your home are well-insulated during the winter months will help prevent the water that escapes from your home from damaging your property – the results of which could be serious If left untreated
The level of coverage Level of cover: The more additional policies you purchase and the more extensive the level of coverage you purchase the higher you’ll have to pay in fees.
How long will your home going to remain vacant?
Home insurance usually has a term of a year however, homes that aren’t used for habitation don’t stay vacant for more than twelve months. This is the reason why insurers typically offer home insurance that is unoccupied on policies that last for three, nine, or twelve months.
If you’re thinking of being absent for longer or when your absence is unexpected typically, you’ll be able to extend your insurance in addition. For instance, if you’re in a foreign country for your vacation and your flights are cancelled or your home sale takes longer than anticipated.
What happens if you don’t notify your provider that your house is empty?
It is possible to invalidate the home insurance policy in the event that you are required to make an insurance claim but don’t inform your insurer that your house is not occupied for longer than the period stipulated in the policy’s terms and conditions.
Claiming on unoccupied home insurance
It is important to determine if your insurance company has specific guidelines on how to submit a claim. For instance, if you have to reach them immediately or if you have to make a police report.
There are some other aspects to consider prior to claiming:
No-claims bonus: Insurance companies often give discounts on their premiums when you haven’t made a claim for some time – however, if you make an application, you’ll forfeit this benefit, meaning that your premiums could increase.
Excess: The excess is the amount you have to pay towards an insurance claim before the insurer takes over the remainder of the cost. It’s not cheap in certain circumstances and it’s worth weighing whether it’s better to keep your no-claims reward and cover the damages yourself.
