Unoccupied Property Insurance
What is Unoccupied Property Insurance?
Unoccupied property or empty home insurance is a specialised insurance policy designed to protect properties that are vacant during the probate process. Probate is the legal procedure that occurs after someone dies, during which their estate is administered and distributed according to their will or the law if no will exists. During this time, any property owned by the deceased might remain unoccupied, sometimes for an extended period, which poses unique risks that standard home insurance does not cover.
What are the risks associated with an empty home?
The potential risks include attracting criminals (with the risk of arson, burglary and criminal damage), flooding and water damage, burst pipes in winter and electrical faults. There’s also the chance of squatters moving into the property, especially in elongated periods of non-occupation.
It is important that an estate’s assets are properly insured.
Finders International offer Unoccupied Property Insurance to solicitors to local authority deputyship teams via our simple block policy facility, saving you considerable time and money.
- Fixed, discounted monthly rates
- Policies offered on 3, 6, 9 and 12 month terms with mid-term cancellation refunds
- A well-known brand – AVIVA Insurance, with whom we have worked since 1997
What is the difference between a vacant property and an unoccupied property?
The terms vacant property and unoccupied property are often used interchangeably, but they have distinct meanings, especially in the context of insurance. The primary difference between the two lies in the state of the property and the intention behind its use.
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Vacant Property – means it is empty and lacks furniture, personal belongings, or other signs of occupancy. It may be disconnected from utilities and not in a state ready for immediate habitation.
The property might be undergoing major renovations or construction. The property may have been abandoned or left empty for an extended period. The property could be a new construction that has never been lived in. Or the owner has moved out permanently, and the property is awaiting sale or rental.
Unoccupied Property – means that it is fully furnished and ready for use but is temporarily not being lived in. The property has all the necessary utilities connected and could quickly become habitable again without significant preparation.
The owners might be on vacation or a long trip. The property could be in the process of being sold or rented, but it is ready to be occupied. The property could be part of an estate going through probate. Or the owner could be in a hospital or care home temporarily.
Local Authorities
Property insurance for unoccupied homes is designed to protect empty homes through the probate process. When a property is left unoccupied while legal matters are being settled, it becomes vulnerable to vandalism, theft, fire, and weather-related damage. Standard property insurance often does not fully cover these risks if the property remains unoccupied for an extended period.
Therefore, local authorities, who may be responsible for managing such properties during probate, require specialised unoccupied property insurance to ensure comprehensive coverage. This type of insurance provides flexible terms that can be tailored to the length of the probate period, offering peace of mind and financial protection until the property’s future is determined.
Local authorities manage a variety of properties, including social housing, council buildings, schools, and other public assets. Ensuring these are adequately insured, even when unoccupied, protects public funds.
Legal Practitioners
When handling estates, solicitors must ensure that any unoccupied properties are adequately insured to protect the value of the estates.
Unoccupied property insurance for legal practitioners in the UK during probate is essential for safeguarding properties that are vacant while the estate is being administered.
During probate, properties can remain empty for extended periods, exposing them to vandalism, theft, fire, and water damage, which are not typically covered under standard insurance policies once the property becomes unoccupied. Legal practitioners handling probate cases must ensure that the estate’s assets, including empty homes, are adequately protected. Specialised insurance policies for unoccupied properties during probate offer tailored coverage that addresses the unique risks associated with vacancy, providing financial protection and mitigating potential liabilities.
Policy Details / FAQs
Why do I need cover?
As a deputy, your responsibility is to act in the best interests of your client and safeguard their property when they are unable to do so themselves. Unoccupied buildings insurance is essential for covering various situations that can arise when a property is vacant for over 30 days, such as when a client enters long-term care or after their passing.
A typical insurance policy does not necessarily provide adequate cover for vacant homes and some insurers may refuse to cover a property left unoccupied for 30 consecutive days or more.
What does it cover?
The policy covers fire, theft and damage. The policy provides indemnity to repair or reinstate the property, including any contents you may be responsible for, up to a limit of £1,000,000 (the property’s market value may be different from the reinstatement value for insurance purposes).
Please contact us for further helps on cases involving:
- Any property which is not residential;
- Any property where the total building rebuild value (including all contents) is in excess of £1,000,000;
- Any property which is in a non-standard condition (i.e. any property that is derelict; undergoing refurbishment; or that is not weather-tight);
- Any property that is listed or the subject of a preservation order.
Do I need to visit?
An initial internal and external inspection must be conducted within 45-days of the property cover with a requirement of monthly inspections after 90-days of cover. Any defects identified must be logged and should be remedied at the earliest opportunity.
Premises should be confirmed as secure with any combustible waste removed from the property (items of no value to the estate are defined as combustible material). Vacant properties should have the gas and water turned off at the mains, with water drained down from the system.
Finders can arrange initial and regular inspections which will be documented and held in accordance with our insurer’s requirements.
How much?
Finders offer a competitive rate that can be paid monthly or yearly.
Risk Management Steps
Empty buildings can give rise to claims from various sources and thieves look for easy pickings. All doors and windows should be securely locked and we would recommend locks should be changed if possible. Sealing letterboxes can prevent would-be arsonists. Neighbours can be requested to keep an eye on the property and let them know who to call in the event of an incident.
If thieves do break-in, they could attempt to remove the copper piping, having little regard for the resultant water escape, or worse still, gas. You should have all water supplies turned off at the mains and the system drained down. During winter months, there is an increasing incidence of burst pipes, so a drain down would greatly reduce burst pipes.
All gas supplies should also be turned off at the mains and pipes purged of existing gas.
Arsonists or thieves attempting to cover their tracks may look to set fire to the property, so all unnecessary combustible waste materials that you are legally entitled to remove should be safely removed as soon as practicable.
Unless you are maintaining a fire/intruder alarm system, it is wise for all electrical supplies to be turned off at the mains to reduce the risk of an electrical fire starting. You may wish to reinstate the electrical supply temporarily for the purposes of periodic checks of the property or other visits to the property.
A scheme exclusively for those who require cover for loss or damage to any residential property they are contractually responsible for in managing the estate.
What is the period of cover?
The cover will last from the time you contract us for services until you ask for the removal from our block policy.
By accessing unoccupied property insurance via Finders International, you hereby grant us an insurable interest in any property placed under the scheme and agree to use an additional service on behalf of the estate (see order form for details).
Where are you covered?
This policy applies in respect of the residential property you are responsible for provided the property is situated in the United Kingdom.
Your obligations
- Attend, inspect and log visits, or formally arrange these to be conducted on your behalf, within the first 45-days of cover and the following must be undertaken:
- Internal and external inspection, with any defects etc logged and remedied.
- Combustible waste removed, including any gas bottles.
- Premises confirmed secure, including all doors and windows.
- Gas turned off at the mains and purged from pipes.
- Water turned off at the main and drained from system.
- If the property remains on cover for 90-days or more, formally arrange monthly internal and external inspections for such time as the property remains on cover, and again any defects/issues etc logged and remedied
- Advise us if there has been any alteration to the property Insured after the effective date of the insurance which increases the risk of loss, destruction, damage, accident or injury or your interest ceases except by will or operation of law.
- Tell us immediately of any event or occurrence which may result in a claim.
- Notify the police immediately of loss, destruction or damage caused by malicious persons or thieves.
- Provide a written claim containing as much information as possible of the loss, liability, destruction, damage, accident or injury including the amount of the claim within thirty (30) days or seven (7) days in the case of loss, destruction or damage caused by riot, civil commotion, strikers, locked out workers, persons taking part in labour disturbances or malicious persons.
- Provide all information and help we require in respect of the claim and pass to us unanswered, immediately, all communications from third parties in relation to any event which may result in a claim under this policy.
- Not admit or repudiate liability, nor offer to settle, compromise, make payment which may result in a claim or pay any claim under this policy without our written agreement.
- Allow us to take over and conduct in your name the defence or settlement of any claim.
- Maintain the building in a satisfactory state of repair; take all reasonable precautions to prevent loss or destruction of or damage to the property insured, accident or injury to any person or loss, destruction or damage to their property.
| Significant Features and Benefits | Significant Exclusions and Limitations |
|---|---|
| Loss or damage by any cause, unless excluded to any residential property in the United Kingdom for which you are contractually responsible for as part of your duties as an Executor. | The Excess as shown in the Schedule, this being the amount or amounts which will be deducted from each and every claim at each separate location. |
| Wide definition of buildings including: adjoining or communicating extension and annexes, domestic outbuildings, green houses and garages, car parks, fixed tanks providing fuel to The Premises, cess pits, septic tanks, terraces, patios, driveways, footpaths, garden walls, fences, gates and hedges, trees, shrubs, plants and turf used in landscaping, swimming pools, hot tubs and tennis courts, ornamental ponds and fountains, garden furniture including ornaments, statutes and the like, air- conditioning systems, pool maintenance equipment and fitted kitchen appliances or similar items, satellite dishes, telecommunication aerials, aerial fittings and masts, video, audio and building management and security systems and equipment, street furniture and lamp posts, solar panels and wind turbines attached to the building where they are not more specifically insured, interior decorations, including carpeting in communal areas. | Damage caused by or consisting of: an existing or hidden defect, gradual deterioration or wear and tear, frost or change in the water table level, faulty design or faulty materials used in its construction, faulty workmanship, operating error or omission by You or any Employee Damage caused by or consisting of corrosion, rust or rot, shrinkage, evaporation or loss of weight, dampness or dryness, scratching, vermin or insects, mould or fungus, change in temperature, colour, flavour, texture or finish, nipple or joint leakage or failure of welds, cracking, fracturing, collapse or overheating of a boiler, vessel, machine or apparatus in which internal pressure is due to steam only and any associated piping mechanical or electrical breakdown or derangement of the Property Insured. |
| Can also include any household contents where you are responsible for such items. | Contents does not include Money over £250, securities (stocks and shares) and documents of any kind; Motorised vehicles, aircraft, boats, boards and craft designed to be used on or in water, caravans and trailers, and the parts, spares and accessories of any of these; any part of the structure of the Home including ceilings, wallpaper and the like; items used for business or professional purposes; or any living creature. |
| Claims Preparation Clause, for any loss up to £1,000 the policy will pay up to £750 to assist you in the necessary work undertaken to prepare a claim. | |
| Automatic Reinstatement of the sums Insured following a loss. | The insurers’ liability is limited to £1,000,000 in respect of total reinstatement for any single property unless otherwise agreed. If you believe the reinstatement value is greater than £1,000,000 you must notify the insurer. |
| Buildings Awaiting Sale – if damage occurs after you have agreed a sale but not yet completed, the policy will indemnify the buyer until date of completion. | |
| Consecutive Damage Cover up to 72 hours. Contractors Interest. | |
| Contract Works – covers for extensions, alterations and refurbishment. | Will not cover where the contract is over £100,000. The first £500 in respect of each Theft/Malicious Damage claim. |
| Damage to gardens and grounds. | Will not pay more than £25,000 any one claim. |
| Clearing of drains, sewers, gutters following Damage. | |
| Environmental Improvements Costs; increased costs following damage that are aimed to reduce environmental harm by improved energy efficiency. | Initial claim must be over £10,000. Maximum cost of this extension is an additional 5% of the claim, or £2,500 whichever is the lower. Does not include the additional cost of complying with any European Union legislation, Act of Parliament, or byelaws of any public authority, Work You had already planned to be carried out prior to the Damage, additional costs for replacing undamaged property. |
| EU and Public Authorities Clause – following Damage, pays for extra costs to meet with Authorities requirements. | In respect of undamaged portion of the Buildings, a maximum 15% of the amount insurers would have paid had that part of the property been totally destroyed. |
| Fire & Security Equipment – costs incurred to reinstate such following Damage. | We will not pay more than £50,000 and one claim. |
| Fly Tipping. | We will not pay more than £15,000 any one claim, £50,000 in total any one 12-month period. |
| Further Investigation Costs. | We will not pay more than £5,000. |
| Gardening Equipment. | We will not pay more than £10,000. |
| Inadvertent Failure to Insure; covers assets you had an obligation to insure but inadvertently left uninsured. | We will not pay more than £250,000. |
| Illegal Cultivation of Drugs. | We will not pay where you have not conducted and maintained a log of internal inspections at least once every six months and retain a log for at least 24 months. We will not pay where you have let to tenants and not obtained a written formal identification record of the tenant or a written employer’s reference or have verified bank details of the tenant. |
| Inadvertent Omission to Insure; cover unidentified assets at the time of the loss. | We will not pay more than £1,000,000 for any one loss. |
| Local Authority Rates | We will not pay more than £5,000. |
| Loss Minimisation Costs and Prevention. | We will not pay more than £5,000. |
| Loss of Rent/Alternative Accommodation. | We will not pay more than £200,000. |
| Metered Services | We will not pay more than £25,000. |
| Munitions of War | We will not pay of the damage is as a result of detonation more than one mile from the boundary of the Premises. We will not pay of the detonation is as a result of a state of war current at the time of Damage. |
| Non-Invalidation | |
| Other Interested Parties | |
| Privity of Contract | We will not pay for any premises disposed of more than 7 years prior to the start of the current period of insurance. We will not pay more than £1,000,000. |
| Professional Fees | |
| Reinstatement of Data | We will not pay more than £5,000. |
| Reinstatement to Match | |
| Services; in adjoining yards, roadways, underground. | |
| Subrogation Waiver | |
| Subsidence | We will not pay the first £1,000. |
| Temporary Removal | |
| Trace and Access | |
| Tree Felling and Lopping | We will not pay more than £500 any one claim or more than £2,500 any one period of insurance. |
| Underground Services |
Insurance by AVIVA
As approved agents of AVIVA and the longest standing user of their self-approval system, Finders International can quickly obtain policies upon completion of our report to protect solicitors and heirs so that beneficiaries can receive funds safe in the knowledge they will not have to repay their shares in the future.
We are authorised and regulated by the Financial Conduct Authority (FCA) membership number 310772.