Some empty or uninhabited homes are classed as “vacant” properties, and some as “unoccupied” properties.
It is important to understand the difference between these terms, as there are legal and insurance implications for each.
In this post we will explain what is classed as an unoccupied property, and discuss why this matters.
Unoccupied vs. Vacant Properties
You might think that an “unoccupied” property is simply one that does not contain any occupants. However, it is a little bit more complicated than this. Depending on the circumstances surrounding the property, it may be classed as either “unoccupied” or “vacant”.
What is an Unoccupied Property?
An “unoccupied property” is a property that was previously inhabited but which, for one reason or another, does not currently have any inhabitants.
When is a Home Classed as Unoccupied?
Here are some situations that might result in a home being classed as an unoccupied property:
- A homeowner passes away, leaving their home empty. Their home will be classed as “unoccupied” until someone lives in it again – whether this is a beneficiary in a will, or a future occupant should the beneficiaries decide to sell the property.
- A homeowner leaves their home for an extended period, such as for a long holiday or a business trip, or for the duration of a renovation project.
- A second home that is only used at certain times of year might be classed as unoccupied when not in use.
A property will have to be left empty for a set period of time before it is legally classed as “unoccupied”. Different insurers will specify different time periods relating to when they consider a property to be unoccupied. Usually this is 30, 45 or 60 days or more. Check with your insurer to find out what they have specified in their policy.
What is a Vacant Property?
A vacant property is a property that is totally empty, with no current occupants.
When is a Home or Properly Classed a Vacant?
Examples of vacant properties include:
- New builds and empty homes that have not yet found a buyer.
- Unused storage, studio, or warehouse spaces.
- Cleared commercial properties that are currently on the market, or which are soon to be on the market.
- Abandoned or condemned properties that are due for demolition.
Unoccupied or Vacant Property Insurance Implications
Home insurance policies usually only cover occupied properties. As we mentioned above, your insurer might consider your home to be “unoccupied” if you leave it empty for more than 30 days at a time.
What happens if you leave your property empty for so long that it meets your insurer’s criteria for being “unoccupied”? Essentially, it means that your insurance may no longer be valid. If anything happens to your property while it is “unoccupied” – such as a fire, flood, or a burglary – then you may not be able to make a claim on your policy.
When Might You Be Affected by Unoccupied Property Insurance Issues?
Here are some situations where this might cause you serious problems:
- If you have inherited a home. You will not be able to occupy, sell, or rent the property until the probate process is complete – that is, until the will has been fully settled. The probate process can take months, and delays are common. If the property is “unoccupied” throughout the process, then a standard home insurance policy may not provide the cover you need.
- If you have a second home. If you leave your second home or your holiday home unoccupied for months at a time, then it is important to ensure that your insurance covers you for any periods when you are not using the home.
- If you are planning an extended trip. If a planned holiday or business trip will take you away from your home for longer than the time specified in your policy, and if your home will be empty or no member of your family will be there while you are away, then you may inadvertently void your home insurance cover.
How To Keep An Unoccupied Property Safe
- Take extra steps to secure the property. Invest in extra security, and consider shutting off the property’s utilities to reduce the risk of fires and floods. However, if the home will be unoccupied through the winter months, setting the heating to come on at certain points during the day can prevent pipes from freezing, which can make leaks less likely.
- Check on the property from time to time. If you can periodically check on the property, you can address any potential issues, such as leaks, before they become truly problematic. Even better, if you can spend the night at the house from time to time, or even appoint someone to look after the property for you, you can ensure that the home never meets your insurer’s criteria for being unoccupied.
- Get specialist insurance for unoccupied properties. Dedicated probate insurance can give you full cover throughout the entire probate period. Similarly, specialist second home insurance can provide cover even if your second home is unoccupied for extended periods throughout the year.
Get Dedicated Unoccupied Home Insurance From James Hallam
Whether you are dealing with the probate process for an inherited home, or you need some specialist insurance for a second home, we can help you get the cover you need at a competitive price.
Learn more about our expert private insurance services here.