One tenant has moved out and the next has not yet moved in. The property may be empty for only a few days while it is cleaned, inspected, redecorated or prepared for new occupants.

It can feel like a routine gap between tenancies. To an insurer, however, that change in occupation may be important.

Empty properties can face a greater risk of theft, malicious damage, undetected escape of water and delayed discovery of fire or storm damage. Landlords should therefore understand how their policy defines unoccupancy, when restrictions begin and what conditions must be followed.

A short void still needs attention

Landlords sometimes assume that unoccupancy conditions matter only when a property has been empty for several months. That is not necessarily correct.

Many policies apply restrictions after a specified period, commonly 30 or 60 consecutive days. Others contain notification requirements or conditions that may become relevant earlier. The wording may also distinguish between an empty property, an unfurnished property and one that is not being lived in.

There is no universal period or definition applying to every landlord policy. The current schedule, wording and endorsements provide the answer.

When does the clock start?

The safest approach is not to guess.

Depending on the wording, the relevant period might begin when:

• The previous tenant permanently leaves
• The tenancy formally ends
• The property is no longer normally occupied
• Furniture is removed
• The building becomes uninhabitable during work

Visits by the landlord, cleaner, contractor or letting agent may not mean that the property is occupied. Advertising it, carrying out viewings or having a new tenancy agreed may not stop the unoccupancy period either if nobody is actually living there.

Ask the broker or insurer how the term is defined and record the answer.

What cover could change?

Once a property has been unoccupied for longer than the period stated in the policy, cover may be restricted. The exact changes vary, but they can affect claims involving:

• Escape of water
• Theft or attempted theft
• Malicious damage or vandalism
• Accidental damage
• Glass breakage
• Loss of rent
• Damage caused by unauthorised entry

Some policies continue to provide broader cover if specified precautions are taken. Others require an unoccupied-property endorsement, an additional premium or a different policy.

Landlords should never assume that buildings insurance has stopped entirely—or that it continues unchanged. Both conclusions can be wrong.

Conditions may apply during the void

An insurer may require the landlord or agent to take particular steps while the property is empty. These could include:

• Inspecting the property at stated intervals
• Keeping a written record of every inspection
• Securing all external doors and windows
• Removing post and other signs that nobody is living there
• Maintaining a minimum level of heating
• Draining or isolating water systems in colder weather
• Switching off utilities where appropriate
• Keeping gardens and external areas maintained
• Removing waste and combustible materials
• Repairing damage promptly
• Notifying the insurer if the empty period will be extended

The landlord must follow the actual policy requirements. A weekly visit is not a substitute for an inspection every seven days if the policy also specifies particular checks or records.

Make inspections meaningful

An inspection should be more than opening the front door and looking inside.

Check for water leaks, damp, storm damage, broken windows, forced entry, electrical problems and signs that somebody has gained access. Confirm that heating or water precautions remain in place and that doors, windows and alarms are secure.

Retain a dated log with photographs. If an agent or contractor carries out the visits, agree who is responsible and make sure the evidence can be obtained if a claim occurs.

Any problem should be addressed quickly. Damage that remains undiscovered in an occupied home for an hour can remain unnoticed in an empty property for days.

Tell the insurer about refurbishment

A void is often used to redecorate, replace a kitchen or bathroom, upgrade heating, rewire the property or carry out structural work.

Ordinary redecoration may be treated differently from major renovation. Building work can introduce additional risks, including exposed pipework, temporary loss of security, combustible materials and contractors using heat-producing equipment.

Tell the broker or insurer what work is planned before it begins. Explain the scope, cost, duration and whether the property will remain habitable. A standard landlord policy may not be suitable for substantial refurbishment or structural alteration.

Do not forget the mortgage and lease

Insurance is only part of the landlord’s position.

A mortgage agreement or lease may contain requirements concerning occupation, security, notification and insurance. A landlord of a leasehold flat may also need to tell the freeholder or managing agent about an extended void or building work.

These requirements are separate from the insurance policy and should be checked independently.

Prepare for the next tenant

Before the new tenancy begins, landlords and agents should:

• Complete repairs and safety checks
• Record the property’s condition with dated photographs
• Take meter readings
• Test alarms and security arrangements
• Confirm the intended tenant and tenancy type
• Tell the insurer if the occupancy differs from the previous arrangement
• Check that any temporary unoccupancy restriction has ended

Moving from a family let to an HMO, student occupancy, supported housing or another tenant category can change the risk. The insurer needs the real occupation, not simply confirmation that the building is no longer empty.

Plan for delays

Referencing can fail, a tenant can withdraw and building work can overrun. A two-week void can therefore become six weeks with little warning.

Landlords should contact their broker before the permitted period expires, not after it. This allows time to discuss any endorsement, alternative cover or additional precautions required.

Review your position with NetRent

Before or during a void, ask:

• How does the policy define unoccupied?
• On what date does the unoccupancy period begin?
• When must the insurer be notified?
• Which covers become restricted?
• What inspections and records are required?
• What heating, water and security conditions apply?
• Is refurbishment covered?
• What happens if the next tenancy is delayed?
• Does the insurer need details of the new occupants?

NetRent works with Clear Insurance Management and its experienced property-insurance team to help landlords examine these details properly.

If your landlord insurance is approaching renewal—or a property is likely to remain empty—send us your existing documents so we can review the cover, conditions and premium.

Telephone: 01352 721300
Email: insurance@netrent.co.uk

An empty period between tenancies may be temporary, but it should never be invisible to the landlord’s insurance arrangements.

NetRent does not provide legal advice. This article represents our understanding of rental property law.