How to manage insurance and security

You shouldn’t cancel insurance or security until the new occupants move in. Why should this be so?

Insurance and security

If your home is sold or you have bought elsewhere, and you are awaiting the sale of your property, you still need to keep the property fully insured and the security contract active until the new residents move in.

Suppose the insurance policy and security contract have been cancelled. In that case, you will have to carry the full cost of any damage repairs and replacing missing fittings in an incident.

If both policies are still in force, you also need to check that the property is 100% covered if it is standing empty. Some insurance policies specify that the property is only covered up to 48 hours after being vacated by the owners, whereas others will provide cover for up to 30 or 60 days.

Vacant

You must be sure to meet all the insurance policy conditions to ensure you are covered if an incident occurs on the property while it is standing empty. This may entail having the security service in full operation or someone guarding the property. Humanity movement on a property, such as a house sitter or a security guard, will also deter burglars.

Keep in mind that even if there is no furniture in your empty property, burglars could steal fixtures, such as outdoor lights and geysers. In addition, disconnected water pipes can cause extensive damage, and live electrical wires are a fire hazard.

Tenants

Check your insurance policy to ensure you are covered if there are tenants living in the property or if it is standing empty for some time while waiting for new tenants to move in.

Some home insurance policies don’t cover the cost of damages caused by tenants, so it’s essential to ensure this clause is part of your policy. If not, speak to your broker or insurer to upgrade your policy to include this facility. You might pay a higher premium, but it will be well worthwhile.

Reassurance

Don’t be tempted to try and save money by cancelling your home insurance and security policies prematurely. The costs involved in repairs or replacements will almost certainly far outweigh any possible savings, and having the policies in place will give you peace of mind.