If your property is going to be vacant for any length of time, making sure it is fully protected and maintained is crucial. One important part of the process is to check your insurance details and make sure that your cover will remain valid.

So, we’ve put together this landlord’s guide to insuring long term unoccupied property. From what it covers to whether you need it, here is everything you need to know about vacant property insurance.

What is Vacant Property Insurance?

All properties are vulnerable to a certain amount of threat and damage, however, vacant properties are particularly at risk. While your building is empty, it’s more likely to face issues such as vandalism, squatting, and water ingress - meaning that the level of insurance needed to cover the property also increases.

Insurance providers respond to this by offering specifically designed policies for vacant properties. Whether you own or manage a residential, commercial, or industrial property - vacant property insurance helps to protect the value of your asset.

What Does Vacant Property Insurance Typically Cover?

The cover of your policy will depend on your insurer. As a general rule of thumb, most vacant property insurance policies will cover weather damage caused by storms or floods, plus criminal damage e.g theft, vandalism, and squatting.

Other things to check on your policy include fire damage and property owner’s liability e.g. if a tree on your property falls and damages a neighbours building.

On the other hand, vacant property insurance doesn’t typically cover; unforced entry e.g. if a criminal or squatter enters your property through an open window or unlocked door, or any damage caused by contractors during major works.

Do I Need Vacant Property Insurance?

Whether you need vacant property insurance depends on how long you expect your building to be empty.

98% of standard building insurance policies will only cover a property for a vacancy period of 60 days or less. Meaning that if your property will be empty for 2 months or more you will need to upgrade your cover. And, if you don’t, you could be at risk of voiding your current policy.

If you are unsure of what is covered in your policy, we recommend ringing your provider to double-check as soon as you discover that your property will have a period of vacancy.

How Much Does Vacant Property Insurance Cost?

The cost of unoccupied property insurance varies depending on a range of factors. Your insurance provider will take into account; the value and size of your property, how long the cover will last, why the property is vacant, and its location.

Unfortunately, vacant property insurance can be expensive but it’s always worth it to make sure that your asset is fully protected and covered. 

Is There an Alternative to Vacant Property Insurance?

Protecting vacant property is expensive – especially when you consider that an unoccupied property generates no profit. With security fees, business rates, and maintenance costs all adding up, many landlords don’t want to add another expensive outgoing to the list.

So, if you don’t want to pay for vacant property insurance, what are your options?

One alternative is to consider protecting your vacant property with property guardians. The relatively modern approach to securing unoccupied properties involves moving professional guardians on-site in order to keep your asset safe 24 hours a day. As the property is never empty, there is no longer any need for vacant property insurance.

At Blue Door Property Guardians, we provide professionally vetted and handpicked guardians to landlords in need of an effective and economical way to look after their vacant property. Our team of experts will help to prepare your property for guardianship, and then the guardians take care of the rest with regular patrols and maintenance checks.

Once the guardians have moved on-site, you can still access your property at any time with only 24-hour’s notice. Plus, we run an efficient 30-day hand back for when you’ve found your next tenants or use for your property. All at zero cost to the landlord.

To learn more, get in touch today to speak directly with a member of the team.