Unoccupied property insurance
Cover options for empty commercial buildings, houses and flats, including properties between tenants, awaiting sale or probate, or under renovation.
What is unoccupied property insurance?
Unoccupied property insurance covers a building that's empty for longer than a standard policy allows, usually 30 or 60 days. Standard home, landlord and commercial policies usually restrict cover once a property has been empty beyond that period, often to fire, lightning, explosion and aircraft only (known as FLEA cover), and stop covering risks such as theft, escape of water and malicious damage.
PIB Insurance Brokers arranges cover for empty commercial buildings, houses and flats, including properties between tenants, awaiting sale or probate, or empty during renovation. A broker can be particularly helpful when the risk is more complex, for example a building empty for a long or unknown period, a property in poor condition or awaiting redevelopment, an inherited property, or several empty units. If your business occupies the building, see our commercial property insurance; if it's a let property between tenants, our landlord insurance.
What unoccupied property insurance covers
Unoccupied policies are usually built from a level of buildings cover plus extra covers, depending on the property, its condition and how long it will be empty. The summaries below are general examples of what may be covered in each section; your policy schedule and wording decide what is and isn't covered in any claim.
Levels of buildings cover
FLEA
Damage from fire, lightning, explosion and aircraft (or things dropped from them). The most basic level, and sometimes the only one available for buildings in poor condition or awaiting demolition.
Watch for: No cover for theft, malicious damage, escape of water or storm.
FLEA plus extended perils
Adds events such as storm, flood, escape of water and impact, usually on condition that the water system is drained down or the heating is kept on.
Watch for: Frost damage where the water wasn't drained down, and damage that develops unnoticed between inspections.
Theft and malicious damage
Adds theft and vandalism where insurers offer it, often with a higher excess and conditions on security such as boarding or an alarm.
Watch for: Theft without forced entry, and damage caused while security conditions weren't in place.
Other covers to consider
Property owners' liability
Claims from people injured, or whose property is damaged, because of the building, such as a fall through a broken floor or masonry falling onto a pavement. An empty building still carries this risk.
Watch for: Claims arising from defects you knew about and didn't fix, and liability you've taken on by contract.
Contents
Furniture and belongings left in a furnished property, such as a home awaiting probate.
Watch for: Low limits for contents in empty properties, and theft without forced entry.
Terrorism
Damage caused by terrorism, which standard property cover usually excludes. Some lenders and leases require it for commercial buildings.
Watch for: Usually bought as a separate policy; terms depend on location and the sums insured.
Legal expenses
Legal costs for some property disputes, such as with neighbours or contractors.
Watch for: Disputes that began before the policy started, claims below the policy excess.
When you need unoccupied cover
Common reasons a property is empty long enough to need its own cover:
- Between tenants: a commercial unit, house or flat waiting for a new tenant or lease.
- Awaiting sale: a property on the market after the owner has moved out.
- Probate: a home left empty after someone dies, while the estate is sorted out. Executors usually become responsible for insuring it.
- Renovation or redevelopment: a building emptied for major works. Tell the insurer what work is planned, as it may change the cover.
- Owner away: a home left empty while the owner is in care, in hospital or working abroad.
Conditions insurers usually set
An empty property is more likely to suffer damage that goes unnoticed, so insurers usually set conditions such as:
- Regular inspections: often weekly, with a written record of each visit.
- Water and heating: the water system drained down, or the heating kept on at a set temperature in winter.
- Security: doors and windows locked or boarded, any alarm set, and letterboxes sealed or post removed.
- Waste removed: rubbish and anything that could burn cleared from inside and around the building.
Your policy sets the exact conditions. If they aren't kept, a claim may be reduced or refused.
What unoccupied property insurance does not cover
Typical limits across unoccupied policies:
- Problems that existed before the policy started: known damage and ongoing disputes are usually excluded.
- Wear and tear: a building deteriorating over time isn't insurable damage.
- Damage that wasn't found in time: losses made worse because inspections weren't carried out or recorded may be limited.
- Theft without forced entry: theft usually needs signs of a break-in to be covered.
- Underinsurance: if your sums insured are too low, the insurer may reduce a claim in proportion (known as average).
- A higher excess: empty properties often carry a higher excess (the amount you pay before the insurer contributes) than occupied ones.
Conditions matter too: claims may also be reduced or declined if policy conditions aren't met. Common examples: inspections not done or not recorded, the water not drained down in winter, or security not kept in place where required.
How much does unoccupied property insurance cost?
There is no standard price. Empty properties usually cost more to insure than occupied ones, because damage may go unnoticed for longer. What you pay depends on the level of cover, the rebuild cost, how long the property will be empty and why, its location, condition and security, whether it's residential or commercial, and your claims history.
What affects the cost
- Level of cover: FLEA cover usually costs less than cover that adds theft, malicious damage and escape of water.
- Security: boarding, an intruder alarm, CCTV or a key-holding service may lower the cost and widen the cover available.
- Inspections: regular, recorded inspections show insurers the property is being looked after.
- Accurate values: an up-to-date rebuild valuation can help reduce the risk of underinsurance or setting the sum insured higher than necessary.
- Your excess: choosing a higher excess (the amount you pay towards each claim) may lower the premium, the price of your cover.
Why work with PIB Insurance Brokers
We explore your options
We can approach insurers that cover empty property and set out the differences in cover, not just price.
We look at your circumstances
Renovation work, a planned sale, probate, a change of use or a property in poor condition may each change what you need to tell your insurer.
We look for common gaps
A standard policy that has dropped to FLEA cover after 30 days, inspection conditions nobody is keeping, or no property owners' liability for an empty building.
Here when things change
Our team is on hand throughout the policy year for advice, whether your circumstances change or you're not sure what to do next.
What our clients say
Reviews from PIB Insurance Brokers clients across the sectors we work with, collected by Reviews.io.
Property empty, or about to be? Check your cover before the limit is reached.
Get a quoteFrequently asked questions
What is FLEA cover?
FLEA stands for fire, lightning, explosion and aircraft. It's the most basic level of property cover. It's often what a standard policy is reduced to once a property has been empty beyond the policy's limit, and sometimes all that's available for buildings in poor condition. It doesn't cover theft, malicious damage, escape of water or storm damage, so check whether wider cover is available.
What counts as unoccupied for insurance?
Insurers usually treat a property as unoccupied once no one has lived or worked in it for a set number of days, often 30, 45 or 60. Some policies also count a home as unoccupied if it isn't furnished enough to live in or no one sleeps there regularly. The exact definition is in your policy. Tell your insurer before the limit is reached, as a claim may be reduced or refused if you don't.
How do I insure an empty property?
Tell your current insurer first, as they may extend cover for a period or on conditions. If they can't, a separate unoccupied property policy may be able to cover the building, and usually property owners' liability, for as long as it stays empty. You'll usually be asked how long it will be empty and why, its condition and security, and whether any work is planned.