Savvy landlords want to protect their investment as much as possible. This means keeping a constant tenancy in their properties.
But all landlords appreciate that is not always possible. Occupancy rates fluctuate in an unsettled market and will be subject to regional variations.
So for some landlords Vacant Property Insurance is a means of protecting their income by filling in the gaps when a property might otherwise be empty.
There are various reasons why you would take vacant property insurance. They include;
If your property is waiting or is in between tenants this is obviously lost income. So depending on your policy you can claim money to cover lost rent.
Rented properties may need renovation from time to time. This, once again, mean a loss of rent. If this is likely you may want to take a policy that will cover you. Also, consider the period of time that the property is empty waiting for renovations to start.
In between tenancies you will undoubtedly need to redecorate. Depending on the size of the property this could take weeks or days. It’s important to understand that having a life-long tenant is unlikely. This means you will need to factor in time to freshen up the property to make it attractive to the next lodger.
The price of the vacant property insurance will be influenced by various factors. The specific area of the property will influence cost of the insurance. Insurers have in-depth knowledge of the UK and will understand what postcodes have higher crimes rates. This information can also be used to check the probability of the property being vandalised or worse still squatters.
Some insurers will offer discounts if the property is furnished and if you place some restrictions to the cover of the policy.
As with all insurance policies you will find clauses or conditions that you need to consider carefully. For instance it is also worth considering the length of time the property has remained unoccupied. Some insurers place restrictions of 30 days other insures may offer times of 3,6,9 or 12 months.
Insurers will expect the property to be secure from theft, vandalism or squatters. This means fitting approved locks to windows and doors.
To improve upon your policy, there are a number of measures that can be taken. This includes securing windows and doors, and carrying out a regular inspection of the property.
Vacant property Insurance can be complex, there are various things to consider. So when it comes to choosing a policy you, it is important to ensure that you select the one most suited to your requirements. Take the take to talk it through.
This type of insurance has different names, which include, empty property insurance, or unoccupied property insurance.