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Unoccupied house insurace

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  • 08-02-2011 11:21am
    #1
    pyzon
    Closed Accounts Posts: 178 ✭✭


    Hi there, emigrating shortly and house for sale, I've contacted insurance compnay so they can apply endorsements as the house would be unoccupied while it sells. They also state they will not renew the policy if the house is still unoccupied should the renewal come up as it falls outside the underwriters acceptance criteria..

    My question is - (well I guess there is insurance for this type of thing - I mean..as soon as we changed provider for house insurance the bank was onto me immediately stating that the house was not covered for insurance and to get it sorted asap). Has anyone done anything similar recently and any issues.

    2nd question is - should I tell my mortgage provider/bank of the situation? is there penalties for this or should I not bother?


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    #2
    wildefalcon
    Registered Users Posts: 932 ✭✭✭wildefalcon


    If the house isn't your home (as it won't be) the bank will put you on commercial rate mortgages.

    Which means that they get more money from you, so............

    Also you may be able to get landlord cover (I know you're not renting) for the house.

    I know the story - I'm off in the summer and am trying to sell the house between now and then.


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    #3
    pyzon
    Closed Accounts Posts: 178 ✭✭pyzon


    commercial rate mortgages, i don't even want to look at the rates!!

    Although I wonder will the insurance company inform the bank anyway by issuing the endorsements.


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    #4
    benny306
    Registered Users Posts: 44 ✭benny306


    The first thing to consider is that every insurance company has an unoccupied property clause. Depending on who you're with the clause will normally state 'If property has been unnocupied for more than x (usually 30, 45, or 60) consecutive days then cover is restricted. For example Aviva, after 60 days will exclude cover for Theft, escape of water, breakage of glass to name a few. Be aware of what restrictions will be applied to your policy, just so there are no surprises. They will be detailed in your policy booklet.

    As a broker I can't tell you the number of water damage claims I have seen where the insured was under the impression cover was in place when it was not. Especially between the months Nov-Mar and in regards to holiday homes.

    It is not uncommon for insurance companies to decline renewal on an unoccupied property because it is noted as your main residence. They have differnt products for differnt types of properties. If you are relocating to a new main residence, you may be able to switch this property over to a Holiday Home policy. You would be required to fill out a new proposal form and incept a completely new policy. Be aware that holiday home policies carry more restrictions that a main residence policy.


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