Any property can become empty at any time under many different
circumstances. When a property is unoccupied a standard house insurance policy
will only usually provide cover for up to 30 days. This is when one must obtain
an empty property insurance policy to keep their asset properly insured against
risks such as fire, storm damage, theft etc.
There could be any number of reasons why a property may
become vacant. The property could be a recent purchase by a landlord and is
undergoing renovation prior to either letting it or selling it on. The property
owner may have moved on and their current property has become empty until a new
purchaser is found. The property owner could be erecting a new extension and
has decided to move out of their property whilst the works are being carried
out. Whatever the reason it is still crucial to ensure that the empty property
is sufficiently insured. If there is a mortgage outstanding on the building
then the lender will insist on some form of insurance cover on the premises.
There are specialist insurance companies and brokers in the
UK that specifically cater for the needs of a property owner with an empty
building. Insurers and brokers that offer unoccupied property
insurance quotes will normally have extensive knowledge on this subject and
can help with risk management advice. Under an empty property insurance
contract, the terms and conditions will differ from those of a standard home
insurance policy. Get your advisor to go through with these in detail. There
could be conditions on locks, how the water is left and how often the premises
need to be visited etc. These conditions will vary from insurer to insurer.
Normally a property may be empty for 3 to 6 month but in
certain scenarios it could be vacant for a year or even longer. If the property
owner is certain that the property is not going to be empty for longer than 3
or 6 months then some insurers will offer a short term policy. A short term
unoccupied property insurance policy can also be purchased online from some
insurance companies. The property may be empty but as a property owner you
still have duty and care to treat the premises as if there is no insurance
cover in place.
A few basic rules in taking care to minimise the risks to
your empty property include making sure all accessible windows and external
doors are fitted with good locks, turning off the water supply and draining the
system, installing an alarm system if budget allows it. Also visiting the
property periodically to clear any post and to keep the lawn mowed. Give the
property a look that says it not unoccupied. Install timer switches for the
lights to turn on and off at random times.
Some insurers will also convert the empty property insurance
policy to a landlords let property policy if you decide to rent the premises
during the term of your policy. Or it could be converted to a standard home
insurance policy if you move in yourself. Insuring a property that is vacant is
essential and expert advice is crucial to ensure that the level of cover you
obtain meets your exact needs.
[Source: http://ezinearticles.com/?What-is-Empty-Property-Insurance?&id=3044621]
