The moment the words unoccupied property insurance or empty property insurance are mentioned, why is that insurance companies either run a mile or quote an extortionate premium? After all, insuring a property is insuring a property regardless of occupancy. It doesnt move anywhere. A storm is a storm and a flood is a flood. Well, let’s break this subject down and put the property owner in the shoes of the insurer. The insurance Market would agree with all of these statements but few property owners realise the consequential financial implications. Let’s take the example of a flood as a result of a storm.
 
True, a storm is a storm, but when the property is occupied, the residents will almost always be present or at worst at work and will be home within twelve hours. They can then immediately act to contain the damage and employ temporary repairs. If the property is vacant, the property remains exposed and the standing water sitting there amplifying the damage, exactly the same is true of escape of water claims (a particular risk that insurers are wary of) yet a storm may subside, but in this case the water keeps pumping out.

The cost implications are huge. Similarly, in the event of a fire, again the fire brigade can be called and the damage contained. Other costs to consider are the employing of a loss adjuster to quantify any loss and to judge if the risk presented to an insurer is identical upon inspection. Then, let’s say, the property owner hasn’t kept the property in a reasonable state or if it was discovered that the property hadn’t been inspected by the property owner. Again, the administrative work between the loss adjuster, the property owner and the insurer is an immense burden. So, it is easy to see why vacant property insurance does have a stigma attached to it.

Thankfully, however, the insurance Market has responded to the fact that property owners are aware of these risks and that the vast majority do comply with their policy terms and conditions and apply their own risk management. For this reason, insurers are offering wider cover at lower premiums. But not many. Consider speaking to a specialist broker who can formulate a policy to suit every risk and situation.

Active are one of the UK’s leading providors of unoccupied property insurance for Landlords with empty houses.