Unoccupied property insurance

Why unoccupied property insurance matters

Unoccupied property insurance is designed for homes that are empty for an extended period. If a property is vacant, risks change. There is no one there to spot a burst pipe, a slipped slate, or a break-in. Standard home insurance often restricts cover after 30 to 60 consecutive days. Past that point, many policies reduce protection dramatically or exclude key risks. A specialist policy helps bridge that gap.

Empty homes are increasingly common. England recorded 261,189 long-term empty properties in 2023, a 5% rise year on year and 16% higher than 2019. Across England, nearly one million properties were unoccupied in 2022. Second homes rose to about 279,870 in 2024. Local authorities now charge premiums on empty homes in more areas, with tens of thousands of properties paying these premiums in 2024. For owners, that brings a blend of elevated risk and added cost pressure.

At the same time, only a small share of UK properties appear accurately insured. A recent assessment found just 7% were correctly covered, with most either underinsured or overinsured. Rising construction costs have widened that gap, making rebuild valuations a critical step. Underinsurance is especially concerning for empty homes, where losses may go unnoticed and escalate.

This guide explains how unoccupied property insurance works, where the limits sit, and how to judge suitable cover for your situation. Insurance can offer real financial protection, but only when you understand what is covered - and where the gaps are. The aim is to give you clear, useful information so you can assess risk, compare options, and make confident decisions.

A vacant home is more exposed to small problems becoming big claims. The right cover and routine checks work together to keep risk in check.

What is covered and how it operates

Most standard home insurance restricts cover once a property is empty beyond a set period, often 60 days. After 180 days unoccupied, many policies limit protection to FLEEA only - fire, lightning, explosion, earthquake, and aircraft. A specialist unoccupied policy can reinstate or extend cover for other risks, subject to underwriting and conditions.

Typical features include buildings cover for the structure, with options commonly up to £1 million or £1.5 million. Contents cover is often available from around £20,000 to £25,000 for items kept at the property. Liability cover for owners usually extends up to £5 million. Add-ons may include legal expenses, trace and access for leak detection, and home emergency support, though these vary by insurer.

There are important limitations. Escape of water is a frequent flashpoint. Some insurers only include it if the water system is drained or the property is heated to a minimum temperature, with regular inspections logged. Theft cover may require specific locks, alarm standards, and evidence of forcible entry. Outbuildings and gardens often have separate, lower limits. Vandalism and malicious damage might be included only with certain levels of cover and security measures.

Claims generally follow a clear path. You report the incident promptly, provide proof of ownership or works, share inspection logs and photos, and take steps to prevent further damage. Settlements are based on the policy sum insured and terms. If the sum insured is below the true rebuild cost, an underinsurance clause can reduce the payout in proportion, which is why an up-to-date valuation matters.

Who should consider it

This cover suits owners with properties that will be empty for longer stretches, such as during probate, sale, refurbishment, or while between tenancies. It is also relevant for second home owners who do not visit often, and landlords facing longer void periods. Nursing and care homes, and larger residential properties with complex reinstatement costs, face a higher risk of underinsurance and benefit from accurate valuations.

It may be unnecessary if your property will only be empty for a short, defined period and your current insurer confirms full cover continues. Likewise, if you can keep the home occupied by house sitters or short-term arrangements approved by the insurer, a standard policy might suffice. The right choice depends on duration, security, maintenance, and the insurer’s terms. Clarity with your insurer is essential to avoid accidental gaps.

Choosing a cover path

1. Basic - FLEEA-only

• Covers fire, lightning, explosion, earthquake, aircraft.
• Often used when a property will be vacant for a defined period and risks are well controlled.
• Usually excludes escape of water, theft, and malicious damage unless upgraded.

2. Standard - Extended perils

• Adds risks like escape of water, storm, flood, and subsidence where available.
• May require drained systems or frost protection, plus scheduled inspections.
• Higher security standards often apply for theft and vandalism cover.

3. Premium - Wider cover and higher limits

• Builds on standard with higher buildings and contents limits.
• Can include accidental damage, improved alternative accommodation cover, and broader trace and access.
• Often suited to higher-value homes or longer refurbishment projects.

4. Optional add-ons

• Legal expenses for disputes and property issues.
• Landowner’s liability increase beyond the base limit.
• Home emergency for urgent call-outs to prevent further damage.
• Specialist cover for unoccupied outbuildings, listed features, or non-standard construction.

Short, standout guidance: Match your sum insured to a current rebuild valuation, not the market value.

What it costs and why

Note: Between 2021 and 2024, average UK buildings premiums rose around 84.7%. Owners should budget carefully and review cover needs annually.

Can you get it

Most UK owners can apply, including freeholders, leaseholders with insurable interest, personal representatives handling probate, and landlords between tenancies. Insurers will ask about the property’s construction, state of repair, occupancy history, security, and planned works. You may need a recent rebuild valuation, photos, and a schedule for inspections. Some risks require drained water systems or minimum heating settings.

Common reasons for decline include severe disrepair, ongoing structural movement without professional oversight, unaddressed water damage, or a high frequency of past claims. Properties left unsecured, or in areas with repeated vandalism, may face restricted terms. Major refurbishments that involve opening the structure or removing the roof often require a specialist renovation or contract works policy instead of, or in addition to, unoccupied cover.

From quote to claim in simple steps

1. Gather details - construction, rebuild cost, security, and vacancy period.
2. Get quotes - compare limits, exclusions, inspection requirements, and excesses.
3. Choose cover - select FLEEA-only or extended perils with needed add-ons.
4. Confirm conditions - inspection frequency, heating or drainage, keyholder details.
5. Buy the policy - check documents, sums insured, and start date carefully.
6. Maintain the property - log inspections, secure entry points, manage water systems.
7. Report incidents quickly - prevent further damage and submit evidence promptly.
8. Review annually - update rebuild costs, limits, and risk controls.

Weighing it up

Check these details before you buy

Focus on the fundamentals. Confirm the unoccupied definition and when restrictions start. Review the excess for each peril, especially escape of water and subsidence. Understand what is included at your chosen level and what is excluded without extensions. Check buildings and contents limits, any single-item caps, and outbuildings restrictions. Note inspection frequency, heating or system-drain requirements, and whether evidence is needed. Look for any waiting periods and how alternative accommodation applies. Ask how renewal pricing is handled and whether mid-term changes are allowed during refurbishment. Keep documents organised, including valuations, photos, and inspection logs, so any claim can be validated quickly.

Alternatives and related cover

1. Standard home insurance with unoccupancy allowance - suitable for short gaps where the insurer confirms full cover continues.
2. Holiday home or second home insurance - designed for properties used seasonally, with occupancy conditions that differ from fully unoccupied homes.
3. Landlord insurance - if let periodically, with cover tailored to tenant risks and void periods.
4. Renovation or contract works insurance - for significant building works, structural changes, and site risks during refurbishment.
5. Vacant property security services - not insurance, but can lower risk and help meet policy conditions.

FAQs

Q: How long can a property be empty before I need specialist cover? A: Many insurers restrict standard cover after 30 to 60 days unoccupied. Beyond that, cover may reduce to FLEEA-only. A specialist policy can extend protection subject to conditions.

Q: What inspection schedule do insurers typically expect? A: It varies, but fortnightly or weekly inspections are common. Insurers may require logs with photos and details of any actions taken. Missed inspections can affect claims.

Q: How do I avoid underinsurance on an empty home? A: Use a current rebuild valuation from a qualified professional and review it annually. Rising construction costs mean sums insured can fall out of date quickly.

Q: Are utilities best left on or off? A: Many insurers prefer water systems drained if the property is unheated, especially in winter. If left on, maintain minimum heating and check for leaks regularly.

Q: Will grants affect my insurance? A: Local grants can help fund repairs or improvements, which may reduce risk. Availability varies by council, with notable schemes across England, Wales, and Scotland.

Q: What extra security helps? A: Approved locks, alarms, motion lighting, sealed letterboxes, and cleared post reduce theft and arson risk. Good security can also improve underwriting terms.

Q: What limits are common for unoccupied cover? A: Buildings often up to £1-1.5 million, contents from £20,000-£25,000, and liability up to £5 million, though exact limits vary by insurer and risk profile.

What to do next

Take stock of your vacancy timeline, property condition, and security measures. Request quotes across FLEEA-only and extended options, then compare limits, exclusions, and conditions side by side. If needed, arrange a rebuild valuation and line up inspection routines before cover starts. Move at your own pace. The goal is clear, reliable protection that fits your property and budget.

Small print

This guide is general information, not personal financial advice. Policy terms, conditions, and limits vary by insurer. Always read your documents carefully, check eligibility and exclusions, and confirm details before you buy.

Short, standout checklist:

• Drain or heat water systems in winter.
• Log inspections with photos.
• Keep sums insured aligned to current rebuild costs.
• Secure entry points and seal the letterbox.

Practical risk tips while empty:

• Disconnect gas where safe and approved.
• Remove valuables from sight.
• Clear gutters and keep gardens tidy to signal active management.

Market snapshot at a glance:

• Around one in every 25 homes in England is empty or a second home.
• 79% of brokers have seen rising interest in unoccupied cover.
• Many properties are insured for only about 63-67% of true reinstatement value.