Help please: unoccupied flat buildings insurance

[Onelasttime]

I'm appealing to the knowledgeable masses on behalf of a friend. She's about to complete on a flat with the intention of renting it out but it needs some renovation work first so will likely be unoccupied for a few months. The problem she's having is finding buildings insurance for it while the work is ongoing.

The other sticky is that one of the builders, who are friends of hers, will be staying there while the work is being carried out so essentially the flat will be occupied. She's being told by some insurers that they won't go near it, others saying the builder needs a short term tenancy agreement before they'll even consider it. There is no mortgage so no pressure from any lender, she just wants to make sure it's all covered in case anything happens. The work being done is mainly basic internal work (rewiring, plastering, central heating install) although there is one wall being removed which requires an RSJ.

She just wants to make sure she's covered in the event of any disaster, which is unlikely, but always possible.

This kind of situation is a common occurrence every day so why do the insurers seem so clueless about it? I'm assuming there are specialist insurers for this kind of thing?

Any advice, experience or contacts would be much appreciated – she's supposed to exchange contracts tomorrow and complete next Friday.

Ta

EDIT: The builders obviously have their own insurance so does she even need insurance?

[blackal]

Usually a flat will be part of a Block Insurance Policy. In fact - for structure, I can't see there being individual policies, as it would entail every proprietor ensuring that others had sufficient cover - and wrangling over which policy has primacy.

Check what the block insurer requires for unoccupied flats (visits every 2/4 weeks etc). Water shut off at main incomer? they may also specify if heating has to be left on at temperature limits.

Local Council will dictate if there is a "nil tax rate" for non-occupied property and the length of time this is allowed (might be 6 months).

You may have to inform the block Factors if you have major works being carted out.

Decide for yourself if you wish to have contents insurance during that period.

[warns74]

As above, the management company (or directors) should be able to advise on the buildings insurance and it would be unusual for her to need anything other than contents. The buildings insurance would usually be covered by the service charge fees from the leaseholders.

Also, make sure she has read the terms of the lease before starting any works in case there are any restrictions (e.g. types of flooring permitted, structural alterations may require formal permission from the freeholder or management co.) and if in doubt check anything with the management company / directors.

[Kevin Glover]

I used Adrian Flux for buildings and contents insurance when I moved and left my house unoccupied whilst being sold. Very few choices of companies who do this and I had to stay there 1 night in 21 to satisfy the policy terms.. price was reasonable though.

[Onelasttime]

Thanks for the replies. I've just found out it's a terrace house, not a flat, so freehold.

I'll try Adrian Flux – I used them when I had modified cars.

[blackal]

Thanks for the replies. I've just found out it's a terrace house, not a flat, so freehold.

I'll try Adrian Flux – I used them when I had modified cars.

In that case - just try some of the compare sites and you may find one that suits the time unoccupied?

Several will cover extended periods away (I had 3months on one policy)

Examine the policy wording to ensure that they are happy with a 3rd party (renovator) being the sole resident for a period.