With the much lauded “recession” now firmly in place, it is inevitable that the number of unoccupied properties, be they residential or commercial buildings, will also increase. It was reported by the Empty Homes Agency that there approximately eight hundred and forty thousand empty properties in the UK. Remember that this is only residential properties and do not include shop and other commercial premises.

What is more,  the National Land Use Database figures have indicated that a further four hundred and twenty thousand  (nearly half a million)  homes could well be realised within vacant commercial properties such as public houses.

This presents a real problem for UK landlords when it comes to purchasing unoccupied property insurance. The property owners insurance market cherry-picks risks when they are occupied and compete heavily for business, almost to the point where the premiums are lower than a standard household insurance product!  This is particularly true when the property is claim free and the landlords insurance policy is restricted to professional tenants. Premiums rise for students and multi-tenanted properies but not by much and not nearly as high as three years ago.

Let property insurance rises again for council tenants and asylum seekers. But what about empty property insurance ? Here, the insurance market shrinks, and most of those insurers vying for business for empty properties only offer restricted cover, typically excluding escape of water, theft and malicious damage – precisely the cover most property owners require. To compound matters, the premium also rises. But there are a few insurers who will offer full cover albeit with higher excesses. But, crucially, escape of water, theft, malicious damage and fire will all be be covered. As they say, something is better than nothing!