Unoccupied property insurance

[thenortherner]

I'm looking to take out a specialist buildings and contents insurance policy on behalf of my mum - I've power of attorney - to cover her home. Unfortunately earlier this year she's gone into a care home with Alzheimers.

Oddly enough it looks like the best decision financially is to leave the property empty and unlet and not to sell, so it's likely to remain empty for a few years to come.

I've dealt with a couple of brokers and both have come back with policies with Prestige Home Insurance - their office looks to be based in an ex-war zone in Belfast, and Midas Underwriting. Both are backed by major underwriters though.

Both insurance companies are littered with damning reviews online so I'd rather avoid. The brokers say that this sort of policy is so specialist that these are the only real choices.

Has anyone any recommendations for a decent insurer which would cover this sort of need?

Thanks in advance

[bennno]

Try towergate insurance, note that its likely youll be asked to inspect the house weekly.

Whats the issue with renting or selling? surely leaving it empty when council tax etc will be due and its a risk of squatters wont make sense?

It will still be included in the means test unless the care is temporary, or unless she has a relative aged over 60 or partner living in the property.

Edited by bennno on Thursday 7th May 11:33

[speedyman]

Try the Co-op, my late mothers house is unoccupied and insured with them.

[thenortherner]

Thanks all.

We'd appointed a solicitor to complete the deferred payment agreement etc with us, and also look through which benefits she'd be entitled to or not depending on whether we rented, sold or left unoccpied. By selling and having cash in the bank or by letting and having an income, we'd lose out as many of the entitlements are means assessed in terms of income or cash in the bank but do take into account the home.

The whole thing is a nightmare and I'm convinced set out to be as confusing as possible so people just give up and probably end up making the wrong decision out of bewliderment.

Just got a quote from Towergate on behalf of Royal Sun Alliance - £900 vs around £250 for the other mentioned insurers.

But what do you do? Peace of mind is worth another £650 a year?

[elanfan]

I used to work for Aviva we insured empty houses but didn’t like doing so. Be careful of any terms that might be applied. Often they’ll ask for water to be turned off at the mains and drained down. Electricity off at the mains. Weekly visits (suggest you keep a logbook). Theft and malicious damage often excluded too.

Have you got a younger family member that could move in there and perhaps pay a lower rent in cash? Potential problems but the house would be fully covered and a lot safer.

[PistonBroker]

I have access to an insurer that covers empty properties in exactly this situation. Automatically provides £1m Buildings and £10k Contents. It's the one I use when Probate Solicitors refer to me.

Link to my website is in my profile.

[JagDroid Man]

Try CIA Insurance. I had my Landlord insurance with them whilst I had a tenant, and when I put it up for sale (unoccupied) I was able to change the policy to unoccupied property insurance.
You can pay for a month, 3, 6, or 12 months etc policy depending on how long you anticipate the property being empty, it was around £150 for 6 months for me.

Edit: A condition of insurance is you need to go and check on the property monthly

[rfn]

We used Towergate when our property was being renovated - 3 month policy was about £200 so your figure seems comparable.

[Dave3166]

I also went with tower gate will renovating my Aunties empty house to get it ready for renting.

Had to check property twice a week, but was there anyway most days.

You only know how good an insurance company is when you put in a claim.

[spanner10]

Whilst aware of reviews of Midas Underwriting I have clients who have had reasonable claims settled . I suggest many of the reviews are from people who neither read, cared or understood the terms and conditions applying to these types of cover and are unhappy now they didn't.
. It is a specialised area and adherence to the letter is needed . If you treat the ' tick box to confirm you have read the terms and conditions ' as if it was a Microsoft licence agreement then beware .

Try a decent local insurance broker

[sospan]

I used Towergate to cover the house we now live in. It was a being extended before we moved in and needed cover for several months. We took a 6 month initial term but had to add an extra 3 months ( a bit more £££)
Cover suited fine with the regular checks included. The builders were not there over the whole period so we were back and fore either decorating or just checking.

[Grandad Gaz]

thenortherner said:

I'm looking to take out a specialist buildings and contents insurance policy on behalf of my mum - I've power of attorney - to cover her home. Unfortunately earlier this year she's gone into a care home with Alzheimers.

Oddly enough it looks like the best decision financially is to leave the property empty and unlet and not to sell, so it's likely to remain empty for a few years to come.

How does that work then. Don’t you have to sell to pay care home fees?

My mum is in a care home with dementia. If anything happened to my dad, who is just about managing at home, then we would have to sell it to pay for her care.

[thenortherner]

Grandad Gaz said:

thenortherner said:

I'm looking to take out a specialist buildings and contents insurance policy on behalf of my mum - I've power of attorney - to cover her home. Unfortunately earlier this year she's gone into a care home with Alzheimers.

Oddly enough it looks like the best decision financially is to leave the property empty and unlet and not to sell, so it's likely to remain empty for a few years to come.

How does that work then. Don’t you have to sell to pay care home fees?

My mum is in a care home with dementia. If anything happened to my dad, who is just about managing at home, then we would have to sell it to pay for her care.

There's a deferred payment agreement set up against the home for each week of care.

You can avoid a deferred payment scheme by paying each week, presumably through the funds from a house sale.

Or you can let the property with permission when taking out a deferred payment scheme.

Benefits and independence payments etc are means tested dependant on type. We were advised that when carrying out the affordability test when it came to the deferred payment agreement, that cash in the bank and / or income from a rented property would be taken into account and lead to an increased personal contribution/deferred payment.

So the house will remain empty in our case.

[thenortherner]

Thanks for the replies everyone.

Insurance is one of those things in life that in my experience - including a recent flood to my home (my fault) - isn't to be fked with or skimped on.

We'll be going for Towergate's recommendation of a Royal Sun Alliance policy despite the additional cost.

Fair point about the bad reviews though. That said, many were just critical of poor communication/phones not being answered/general heal dragging etc.

This is the office of Prestige Insurance. An ironic location.

[Freshprince]

You may also be liable for additional unoccupied property CT at 100%.

[thenortherner]

Freshprince said:

You may also be liable for additional unoccupied property CT at 100%.

I thought so but apparently it's exempt from council tax because of the cirumstance.

[Grandad Gaz]

thenortherner said:

Grandad Gaz said:

thenortherner said:

I'm looking to take out a specialist buildings and contents insurance policy on behalf of my mum - I've power of attorney - to cover her home. Unfortunately earlier this year she's gone into a care home with Alzheimers.

Oddly enough it looks like the best decision financially is to leave the property empty and unlet and not to sell, so it's likely to remain empty for a few years to come.

How does that work then. Don’t you have to sell to pay care home fees?

My mum is in a care home with dementia. If anything happened to my dad, who is just about managing at home, then we would have to sell it to pay for her care.

There's a deferred payment agreement set up against the home for each week of care.

You can avoid a deferred payment scheme by paying each week, presumably through the funds from a house sale.

Or you can let the property with permission when taking out a deferred payment scheme.

Benefits and independence payments etc are means tested dependant on type. We were advised that when carrying out the affordability test when it came to the deferred payment agreement, that cash in the bank and / or income from a rented property would be taken into account and lead to an increased personal contribution/deferred payment.

So the house will remain empty in our case.

Thanks for that. Something we shall look into.