Few situations expose landlords to more risk—and more potential claim disputes—than periods of unoccupancy, refurbishment, or structural alterations. These scenarios require very different insurance arrangements compared to a standard let, yet they remain one of the most misunderstood and under-declared areas in landlord insurance.

As we move toward 2026, insurers are tightening their stance on unoccupancy and refurbishment risks. Underwriters increasingly expect clear, accurate, and timely disclosure of any change in the property’s condition or use. Failure to do so is one of the most common reasons claims are reduced or refused.

On Day 10 of our 20-day series, we look at why proper cover during unoccupied periods or works is essential, what insurers will expect in 2026, and how NetRent and Clear Insurance Management help landlords protect their investments throughout every stage of a refurbishment or project.

Why Unoccupancy & Works Are High-Risk Categories for Insurers

From an insurer’s perspective, unoccupied or altered properties create significantly higher exposure due to:

• increased fire risk

• increased escape-of-water risk

• vandalism and malicious damage

• theft of building materials

• greater weather vulnerability

• no occupiers present to spot issues early

• risk of non-compliant work by contractors

• increased claims severity due to delayed detection

These are risks insurers take extremely seriously—particularly heading into 2026, when stricter underwriting standards are expected to come into force.

What Counts as “Unoccupied” or “Undergoing Works”?

Many landlords assume a property must be completely vacant or fully under construction before declaring a change in risk. In practice, insurers may treat a property as unoccupied if:

• no tenants are living there

• the tenancy has ended and no new tenancy is in place

• refurbishment work requires the property to be empty

• it is empty for more than 30 days (though some insurers apply different limits)

A property may be considered undergoing works when:

• electrical, plumbing or structural changes take place

• walls, floors or ceilings are removed or altered

• loft conversions, extensions or significant refurbishments begin

• new kitchens or bathrooms are fitted

• heating systems are replaced

• hot works (welding, soldering) are being carried out

• scaffolding is erected

These changes can—and often do—impact cover unless properly declared.

The Biggest Insurance Mistakes Landlords Make During Projects

1. Failing to Notify the Insurer

This is the number one cause of claim repudiation during refurbishments.

Insurers must know:

• when a property becomes empty

• what work is planned

• who is carrying out the work

• what protections are in place

• expected timelines

2026 Impact

Insurers will expect earlier and more detailed notification; last-minute declarations will be penalised with surcharges or risk refusals.

2. Assuming Standard Policies Cover Works

Most landlord policies do not cover:

• major refurbishments

• structural works

• alterations

• extensive plumbing or electrical changes

• contractor-led projects

These require unoccupied property insurance or contract works insurance.

2026 Impact

More insurers will explicitly exclude refurbishment-related losses unless specialist cover is arranged.

3. Not Checking Contractor Insurance

Contractors should have:

• public liability

• employer’s liability

• professional indemnity (for design work)

• heat-work controls where relevant

If a contractor causes damage and cannot evidence insurance, the landlord may become liable.

2026 Impact

Insurers will increasingly demand evidence of contractor insurance during claims.

4. Underestimating the Time Required for Completion

Projects almost always take longer than anticipated.
If a property remains unoccupied beyond the timeline declared to the insurer, cover gaps can emerge.

2026 Impact

Insurers will be stricter about declared timeframes and may require extensions to be confirmed in writing.

5. Overlooking Security Requirements

Unoccupied property policies typically require:

• boarded windows if needed

• deadlocks

• alarm systems

• weekly inspections

• water system isolation

• removal of combustible waste

Failure to comply can weaken or void cover.

2026 Impact

Compliance conditions will become more prescriptive and closely enforced.

How NetRent & Clear Help Protect You During Unoccupancy or Works

Our joint approach ensures landlords remain fully protected throughout every stage of a project:

✔ Expert assessment of what cover you need

✔ Immediate notification to insurers

✔ Clear description of works to avoid disputes

✔ Guidance on contractor documentation

✔ Advice on compliance with insurer requirements

✔ Ensuring correct cover is in place

✔ Full claims support if anything goes wrong

Whether you’re carrying out a minor refurbishment or a full structural conversion, we help you meet insurer expectations with confidence.

Why Getting This Right Now Matters for 2026

Insurers in 2026 will reward landlords who:

• correctly notify unoccupancy

• declare works fully and accurately

• follow compliance conditions

• engage qualified contractors

• maintain documented project timelines

Those who fail to do so may face:

• higher premiums

• tougher policy conditions

• reduced insurer appetite

• increased excesses

• refused claims

A well-managed project now contributes directly to a cleaner claims record and a stronger negotiating position next year.

Contact NetRent

For guidance on cover during unoccupancy or refurbishment:

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