Landlords can find their premises unoccupied for extended periods for a number of reasons; for example, simply because one tenant leaves and it takes time to find an acceptable replacement or, in more severe cases, because the area is changing in character and prospective tenants are thin on the ground. Or it may be that you have decided to sell the property and do not want sitting tenants slowing the process down.

Steps to take

Whatever the reason, you must advise your Landlord Insurance company or broker that the premises are empty because this can have an effect on the policy – it may also be a policy condition that you do so, unless the period is very short, perhaps less than three or four weeks. During a period of unoccupancy, certain covers may be excluded, such as water damage and malicious damage.

Protecting your interests

Simply advising your property owners’ insurance company is not enough, however. You also need to take active steps to protect your property by inspecting the premises internally and externally at least every seven days, having previously taken all reasonable steps to make sure that the premises are secure.

Good practice suggests that water and other services should, where practical, be drained down &/or switched off – unless, of course, you have a sprinkler or alarm system that requires power or water, or a central heating system is being run to protect the building from frost damage. Any combustible or waste material should be removed from the premises and the property should be kept in a good state of repair.

Failure of duty

Depending on the type of policy you have, some of these precautions may be policy conditions and failure to comply could invalidate your insurance altogether – or at least allow the insurance company significantly to reduce the amount of any claim that you may have to make. Your landlords’ insurance policy may carry an excess in the event of a water damage or malicious damage claim while the premises are unoccupied.

Getting the right advice

It is important to seek independent professional advice before making any decision about your property owners’ property and liability insurance as well as your financial obligations. You should always ask your insurance advisers like Alan Boswell Insurance Brokers what experience they have of dealing with residential and/or commercial rental property insurance.

Nothing contained in the article should be considered as giving individual financial advice. Please note that there may be variations for those living in or letting property located in Scotland and Northern Ireland.

For more details visit: http://www.Alanboswell.com

Alan Boswell Insurance Brokers

Harbour House
126 Thorpe Road
Norwich
Norfolk
NR1 1UL

01603 218000