What Is Unoccupied Property Insurance?
Unoccupied property insurance is specialist cover designed for buildings that are empty or not in regular use. Standard property insurance policies typically contain conditions relating to occupancy, and if a building becomes vacant for an extended period, the cover may be reduced, restricted, or voided entirely.
Properties can become unoccupied for many reasons — between tenancies, during renovation, following a bereavement, pending sale, or simply because a commercial unit has not yet been let. Whatever the reason, the insurance implications are significant and should be addressed promptly.
When Does a Property Become "Unoccupied"?
Most insurance policies define a property as unoccupied if it has not been lived in or used for its intended purpose for a continuous period — typically 30 to 45 days, though this varies between insurers. Some policies use the term "unfurnished and unoccupied" as a combined condition.
It is important to note that occasional visits to check on the property do not typically count as "occupation." The insurer is looking for regular, sustained use of the property for its intended purpose.
What Happens to Standard Policies?
When a property becomes unoccupied, most standard insurance policies will apply one or more of the following restrictions:
- Removal of cover for escape of water, malicious damage, and theft
- Increased excesses on remaining covered perils
- Requirement to drain down the water system and turn off utilities
- Requirement for regular inspections (typically weekly)
- Complete voiding of the policy if the insurer is not notified
The most critical point is notification. If your property becomes unoccupied and you do not inform your insurer, you risk having a claim declined on the grounds of non-disclosure or breach of policy conditions. This applies to both residential and commercial properties.
Risks Facing Unoccupied Properties
Empty properties face a heightened risk profile compared to occupied buildings. The absence of regular human presence means that problems can develop undetected and cause significantly more damage before they are discovered.
Escape of water. This is the single biggest risk for unoccupied properties. A burst pipe or leaking fitting in an empty building can cause catastrophic damage over days or weeks before anyone notices. In winter, the risk is compounded by freezing temperatures.
Vandalism and break-ins. Empty properties are more attractive targets for vandals, squatters, and thieves. Visible signs of vacancy — such as overgrown gardens, accumulated post, and dark windows — signal that a property is unoccupied.
Arson. Unoccupied buildings are disproportionately affected by arson. Fire and rescue services consistently report that vacant properties are among the most common targets for deliberate fires.
Deterioration. Without regular maintenance and heating, buildings can deteriorate rapidly. Damp, mould, and structural issues can develop quickly, particularly in older properties.
What Does Specialist Cover Include?
Specialist unoccupied property insurance is designed to address the specific risks of vacant buildings. A typical policy may include:
- Buildings insurance against fire, storm, flood, and other standard perils
- Malicious damage and vandalism cover (often excluded on standard policies for empty properties)
- Property owners' liability — essential even if the building is empty
- Cover during renovation or refurbishment works
- Flexible policy periods — some insurers offer monthly or quarterly terms
- Cover for properties that are partially occupied or being used intermittently
Specialist policies may still exclude certain perils or apply higher excesses, particularly for escape of water if the water supply has not been turned off. The specific terms will depend on the property type, location, condition, and the reason for vacancy.
Risk Management for Empty Properties
Insurers expect property owners to take reasonable steps to protect vacant buildings. The following measures are commonly required or recommended:
- Drain down the water system and turn off the mains supply (or maintain heating above 10°C)
- Secure all entry points — doors, windows, and any other access points
- Install and maintain a working intruder alarm
- Arrange regular inspections — at least weekly, with a written log
- Remove all combustible materials and waste from the property
- Maintain the external appearance — keep gardens tidy and clear post from the letterbox
- Ensure fire detection systems remain operational
- Board up any broken windows or damaged entry points immediately
Council Tax and Business Rates
In addition to insurance considerations, owners of unoccupied properties should be aware of the financial implications of vacancy on council tax and business rates.
For residential properties, most local authorities charge 100% council tax on empty properties after an initial exemption period (which varies by authority). Some councils apply a premium of up to 300% for properties that have been empty for two years or more, under powers granted by the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018.
For commercial properties, empty business rates relief provides a 100% exemption for the first three months of vacancy (six months for industrial properties). After this period, the full business rate becomes payable.
Next Steps
If you own a property that is currently unoccupied or is about to become vacant, the most important step is to contact your insurer or broker immediately. Do not wait until the standard policy exclusion period has elapsed — early notification gives you the best chance of maintaining continuous cover.
Focus Insurance Services can arrange specialist unoccupied property insurance for both residential and commercial buildings. Whether your property is between tenants, undergoing renovation, or awaiting sale, we can help find appropriate cover for your specific situation. If you manage multiple properties, ourproperty portfolio guide explains how to consolidate cover. Learn more about why using a broker matters for specialist risks like vacant property.
Contact our team for a no-obligation discussion about your vacant property insurance needs.
Important Disclaimer
This article is for general information only and does not constitute insurance advice. The specific terms, conditions, and exclusions of any policy will vary. Always read your policy documentation carefully and speak to a qualified broker for advice tailored to your circumstances.
Found this helpful?
Share it with others who might benefit.