At a time when weather damage to properties is uppermost in the minds of property owners across the UK, especially given the floods we have had in various parts of the country in the last few months, it is no surprise that insurance premiums and pay outs are coming under close scrutiny by landlords and insurers alike.
Fact: unoccupied properties are at risk. The short answer to this problem is that occupied premises, including those deemed as ‘let’, provide a higher measure of security and reduce the potential of a hike in premiums to compensate for an unprotected premises.
Although it won’t come as a surprise that unoccupied properties present more of a risk and thereby attract a higher premium, a number of insurers have had to confront their premiums based on the rise of rentals and buy-to-let mortgages alongside the inevitable periods between occupancy where a property will stand alone to fend for itself.
Did you know that in homeowners’ and dwelling forms, damage to a property caused by vandalism or burglary is excluded if the property has been vacant for more than 60 consecutive days immediately before the loss? In some cases, older forms use 30 days, so property owners need to check the specific language used in their policy.
Fact: more than 600,000 residential properties in England are left unoccupied, of this 200,000 are identified as ‘long-term vacant’ according to the charity Empty Homes. Long-term vacant properties are deemed most concerning as these have been unoccupied for six months or more. An important note here is that existing buildings and contents cover will not provide adequate protection should something go wrong. Therefore, it is important that vacant property owners review their insurance polices to make sure they are covered.
Did you know that Ad Hoc has the most comprehensive insurance policies in place within the UK? To find out more, get in contact and we can discuss further.