If your rental property is going to empty for an extended period of time, it’s essential that you have the proper building insurance in place. Landlord unoccupied property insurance is designed to protect empty rental properties currently unoccupied by tenants.

In this blog, the insurance experts at Lets Protection will cover everything you need to know about unoccupied property insurance for landlords. We’ll include:

• What is unoccupied property insurance for landlords?
• Do you need specific landlord insurance for unoccupied properties?
• What does landlord unoccupied property insurance cover?
• What isn’t covered by landlord unoccupied property insurance?

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What is unoccupied property insurance for landlords?

Unoccupied property insurance (sometimes called empty property insurance) is designed to protect the property owner or landlord in the event of property damage or if the empty property is blamed for an injury. Landlord unoccupied property insurance is designed specifically for rental properties that are unoccupied for a longer time than a standard insurance policy will allow. 

Rental properties that are unoccupied for long periods of time are more at risk of damage, including vandalism, burglary, and burst pipes, because no one is there to monitor the property. This is why most standard landlord home insurance policies don’t cover unoccupied properties. Instead, you’ll need to purchase a separate policy or add unoccupied property cover to your existing policy. 

What counts as an unoccupied property

If your rental property is unoccupied for over a set length of time (usually over 30 days or 60 days, depending on your insurance policy), it will be classed as an ‘unoccupied’ or ‘vacant’ property. Your property might be empty due to renovation work or because you're in between tenants. Whatever the reason, taking out specific cover is important to protect your unoccupied property. 

Some landlord unoccupied home insurances require properties to be visited regularly, and most will have minimum security requirements; otherwise, the policy will be invalidated.

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Do you need specific landlord insurance for unoccupied properties?

If your rental property is empty for longer than the maximum amount of time allowed by your standard landlord insurance policy, you’ll need a specific unoccupied property insurance policy. Otherwise, your landlord building and contents insurance policy will likely not cover you in the event of damage or an injury claim. 

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What does landlord unoccupied property insurance cover?

Different landlord unoccupied property insurance policies can vary from one insurer to another. However, here’s an overview of what most policies will include:

• Property owners' liability. This protects you if a third party is injured on or as a result of your property and will cover costs and damages awarded. 
• Property damage. This covers any property damage as a result of events like a fire, flood, subsidence, burst pipe or vandalism.
• Contents insurance. This covers any damage or theft of contents left within the unoccupied property.
• Cover for damage or theft of contents within your property.

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What isn’t covered by landlord unoccupied property insurance?

The exact details of what is and isn’t covered will depend on the insurer you choose and the level of cover you select. Most landlord unoccupied property insurance policies will exclude theft that’s not a result of unforced entry or is due to a lack of adequate security precautions, for example, leaving a window open or a door unlocked. 

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Specialist landlord insurance policies by Lets Insure

Now you’re aware of what unoccupied property insurance is and exactly when you need it, it’s a good idea to think about what other insurance policies can help protect your financial investment. 

Lets Insure offers a range of specialist insurance policies designed to make landlords' lives easier and offer them peace of mind about their rental properties. We offer rent guarantee insurance, home emergency cover and deposit replacement insurance.

Rent guarantee insurance

Our rent guarantee insurance is designed to protect you if your tenants stop paying rent during their tenancy. This policy pays up to a maximum of £2,500 per calendar month from the date of the first missed payment until you regain legal vacant possession of your property. This is a worthwhile addition if you depend on your rental income and need extra protection. 

Our Rent Guaranteed service is the next step out. This ensures you’re paid on time each month, even if your tenants miss a payment or pay late. This means you won’t have to stress about what will happen if your tenants don’t pay on time.

Home emergency cover

This cover is a great option for busy landlords who don’t have the time to be available 24/7 in case there’s an emergency in your rental property. You’ll have 24-hour access to a team of certified contractors who will deal with any emergencies in your rental property as quickly as possible. You won’t have the hassle of sorting out any issues yourself. 

Deposit replacement insurance

Our deposit replacement insurance acts as an alternative to a traditional tenancy deposit. This legal expenses insurance protects you if there is a dispute over the damage found in your rental property. 

The tenant will pay us a non-refundable fee (approximately 1 week’s rent), which then insures you in case of a dispute. The policy will cover legal expenses up to £50,000. If a settlement cannot be reached, we will pay the amount you are claiming from the tenant (up to a maximum of 6 or 12 weeks' rent).

Visit our site to view our full range of landlord insurance policies. 

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