If you own a building that’s been left empty for a significant period of time, you might easily refer to it either as “vacant” or “unoccupied”. Same thing right? Well, at least legally, the two names can mean quite different things – particularly when it comes to insurance.
What is the Difference Between a Vacant and Unoccupied Property?
When shopping around for insurance, you’ll notice that there is “unoccupied property insurance” and there is “vacant property insurance”. Both cover for similar things, but vacant property insurance tends to be more expensive, because of the way they define it.
Unoccupied properties are those that retain all (or many) of the possessions of the previous occupants, such as furniture and personal items, but have not had someone staying there for over 60 days.
Vacant properties, on the other hand, are those that are completely empty, without furnishings or any signs of habitation.
Why is Vacant Property Insurance More Expensive?
Essentially, it comes down to risk. Unoccupied homes still display signs of life, making them appear occupied to the outside world. Vacant homes, however, are often clearly uninhabited – and this can attract vandals, squatters, thieves and more.
Insurers are aware of this, which is why they have a separate policy for vacant homes and why it often costs up to 3x more than unoccupied insurance.
If you do own a vacant property, one of the best security measures you can take is to make it look lived in. This could mean putting in lights on a timer, taking down boarded windows, or bringing in property guardians!
Can I Stay Once a Month to Qualify for Normal Home Insurance?
Short answer? No. In general, the property must be your permanent residence, and this needs to be provable. However, if you retain the necessary furnishings (kitchen unit, bed, sofa, kitchenware etc), you’ll likely be able to qualify for unoccupied property insurance.
Who Needs Unoccupied Home Insurance and Who Needs Vacant?
Unoccupied:
If you own a second home that you only visit a few times a year (although standard home insurance will generally cover you for the first 30 days after leaving).
If it is the home of a deceased relative that you’ve inherited and is standing empty
If you’re travelling and leaving it empty for several months
If you’re a landlord between tenants (such as a student rental left empty over summer)
If you’re going into hospital for an extended period
Vacant:
If the property is standing empty in preparation for being sold
If the property is newly built and is awaiting it’s first tenancy
If it is a commercial property that has been emptied
If it is an empty warehouse or studio space, not in use
There are plenty of other scenarios in which a property might be classed as either “unoccupied” or “vacant”. Your best bet is to speak with several insurance providers to discuss your options and find the best policy for your building.
If you’re concerned about the costs of insuring your vacant property, or are worried about the dangers of vandals or break-ins, Blue Door Property Guardians is a security solution that might be of interest. By installing 24/7 residential guardians, your property will no longer be classed as vacant and will benefit from round-the-clock surveillance and care. All at zero cost to you.
To find out more, get in touch today and speak directly with a member of our team.
