Unoccupied Property Insurance
Thinking of buying and renovating a derelict property? Find out why you need unoccupied property insurance.
Unoccupied Property Insurance
Thinking of buying and renovating a derelict property? Find out why you need unoccupied property insurance. In this article, we cover the following:
- What is unoccupied property insurance?
- When do you need unoccupied property insurance?
- Who is unoccupied property insurance for?
- What does unoccupied property insurance cover?
- What isn’t covered by unoccupied property insurance?
- How much does unoccupied property insurance cost?
What is unoccupied property insurance?
Unoccupied property insurance is a type of property insurance that covers a home that the owner or any tenants do not currently inhabit. This type of insurance is typically necessary when a home is vacant for an extended time, such as when the owner is away on vacation or if the home is being renovated and is uninhabitable.
Unoccupied property insurance typically provides coverage for damages caused by things like vandalism, theft, and weather events, as well as liability protection in case someone is injured on the property.
When do you need unoccupied property insurance?
You may need unoccupied home insurance if you are planning to leave your home vacant for an extended time, such as if you are going on an extended vacation, if the home is being renovated and is uninhabitable, or if you have recently sold the home but have not yet closed on the sale. In these situations, it is essential to have unoccupied home insurance to protect your home from potential damages or liabilities.
Who is unoccupied property insurance for?
Unoccupied property insurance is typically necessary when a home is vacant for an extended time, such as when the owner is away on vacation or if the home is being renovated and is uninhabitable.
Unoccupied home insurance can help protect your home from potential damages or liabilities that may arise while it is unoccupied.
It's important to note that not all homeowners insurance policies provide coverage for unoccupied homes, so if you are planning to leave your home empty for an extended time, you should check with your insurance company to see if you need to purchase a separate unoccupied home insurance policy.
What does unoccupied property insurance cover?
Unoccupied property insurance typically provides coverage for damages caused by things like vandalism, theft, and weather events, as well as liability protection in case someone is injured on the property. Some policies may also cover additional risks, such as damage caused by freezing pipes or utility outages.
It's important to carefully review the terms of your policy to understand exactly what is and is not covered.
You may also want to consider purchasing additional endorsements or riders to extend the coverage provided by your policy.
What isn’t covered by unoccupied property insurance?
Unoccupied home insurance typically does not cover damage caused by normal wear and tear or by lack of maintenance, nor does it cover damages that occur as a result of illegal activities, such as drug manufacturing or growing. In addition, unoccupied home insurance may not provide coverage for certain types of personal property, such as valuable items like jewellery or artwork.
It's important to carefully review the terms of your policy to understand exactly what is and is not covered. You may also want to consider purchasing additional endorsements or riders to extend the coverage provided by your policy.
How much does unoccupied property insurance cost?
The cost of unoccupied property insurance can vary depending on several factors, such as the location and value of the home, the length of time the home will be unoccupied, and the type and amount of coverage you need.
Unoccupied home insurance is typically more expensive than standard homeowners insurance because it provides coverage for a higher level of risk.
It's essential to shop around and compare quotes from multiple insurers to find the best rate for your unoccupied home insurance policy.
You may also save money on your premiums by reducing the risks associated with an unoccupied home, such as installing security systems or providing regular property maintenance.