What was once an occasional 'odd-case' referral is rapidly becoming a mainstream advisory issue
Rising demand for non-standard household and commercial property insurance is no longer a fringe concern, and mortgage brokers are at the sharp end of this shift. Unoccupied homes, thatched roofs, subsidence and flood-risk properties clients are all driving growth, with unoccupied cover alone cited by many brokers as one of the fastest-rising areas of enquiry.
What was once an occasional “odd-case” referral is rapidly becoming a mainstream advisory issue. Brokers who can identify non-standard risks and partner with the right providers are increasingly the difference between a smooth completion and a stalled, even collapsed, mortgage. Also, with more lenders diversifying their risk appetite, it is more important than ever to get the right GI policy to match.
What “non-standard” really means today
Ask ten brokers what “non-standard” means, and you’ll likely get ten different answers. Traditionally, it referred to properties that fell outside mass market underwriting appetite, but today the definition has widened considerably.
Non-standard insurance now applies to any property or risk that mainstream insurers would decline, heavily rate, or exclude key perils for. This includes:
- Unoccupied properties - homes standing empty during probate, renovation or between tenancies.
- Construction and materials - timber or steel frames, flat roofs over 25%, or listed buildings with heritage features.
- Location-based risks - flood plains, coastal erosion areas, or regions with a history of subsidence.
- Usage and occupancy - mixed residential-commercial premises, short-term lets, residential with lodgers or home-based businesses.
- High-value or complex homes - properties with rebuild costs beyond standard insurer limits or requiring bespoke valuations.
In the commercial sector, similar challenges apply: converted barns, mixed-use buildings, and multi-occupancy premises often fall outside standard package policies. Non-standard doesn’t necessarily mean high risk, but it does mean the case needs to be properly understood and individually underwritten.
With property portfolios diversifying and construction methods evolving, more mortgage cases now involve at least one non-standard element. What was once the exception is now part of everyday business.
Where the growth is coming from
The sharp rise in enquiries for non-standard insurance stems from several converging trends.
Unoccupied properties:
Across England, more than 260,000 long-term empty homes now stand vacant - the highest figure in a decade. Many are tied to inheritance delays, redevelopment or buy-to-let turnover. Yet standard policies typically lapse or restrict cover after 30 days of vacancy. As more property owners become landlords or renovate, brokers are seeing unoccupied insurance become one of the fastest-growing lines.
Evolving property use:
Hybrid live/work premises, short-term lets and mixed-use buildings have blurred the boundaries between residential and commercial property. These require specialist underwriting to reflect dual or changing use, as well as accurate rebuild valuations that account for their hybrid nature.
Climate and geography:
Flooding, storm damage and subsidence are now regular features of the risk landscape, with some postcodes reclassified into higher risk bands. Homes once comfortably covered by standard insurers are now declined or rated heavily. Thatched and heritage homes face their own complexity, often needing bespoke craftsmanship costings for rebuild assessments.
Bespoke markets:
Clients increasingly expect tailored protection that reflects their property, collections and lifestyle. Flexible underwriting and service are essential to maintain the right cover across portfolios.
Demand for specialist cover is expanding, yet insurer capacity remains tight. In a market where differentiation is limited, brokers need partners who can actually deliver solutions for these complex risks, with a broad panel of quality insurers. Brokers need a GI wholesale broker that offers speed of service, breadth of choice, and the confidence that even unusual cases can be placed efficiently and compliantly.
Turning risk into opportunity
For mortgage brokers, the non-standard market presents both risk and reward. The challenge lies in recognising when a client’s property no longer fits within standard criteria and understanding the consequences if it isn’t insured appropriately.
If a property is misclassified and a claim later fails, the lender’s security can be compromised and the client exposed to major financial loss. Rising rebuild costs and the ongoing issue of underinsurance amplify this risk. For advisers, poor cover choices can also undermine client trust, Consumer Duty obligations and amplify complaints.
Yet these same pressures create opportunity. Brokers who proactively assess insurance suitability, ask early questions about property use, and know when to use a specialist add real value to the mortgage process. They protect their clients, strengthen lender confidence, and often open new income streams through general insurance partnerships.
Working with specialist providers can streamline this process. Brokers gain access to wider underwriting appetite, a stronger placement rate and practical support, turning potentially problematic cases into a professional strength. In this sense, the non-standard market is not a problem to avoid but a growing space to own.
As property markets evolve and insurance appetites tighten, understanding non-standard risks is becoming part of what good advice looks like. Lenders increasingly expect brokers to ensure the property securing the loan is adequately insured, not just with any policy, but the right one.
Arranging specialist cover is now a core part of delivering good client outcomes and protecting professional reputation. For forward-thinking advisers, it’s clear: non-standard is the new standard, and with the right specialist partners behind them, mortgage brokers are perfectly placed to turn complexity into opportunity.
Mark Chappell is Head of Intermediary at Ceta (part of the Atec Group). With more than two decades of experience, he previously held senior roles at TMG Mortgage Network, including Head of Strategic Partnerships and National Sales Manager. In his role at Ceta, Mark is tasked with growing the wholesale broker proposition, strengthening relationships with intermediary partners and helping them to tap into under-utilised opportunities in general insurance attached to mortgages, recognising that many mortgages arranged by brokers currently proceed without GI cover. Known for his energetic, innovative approach, Mark joins a fast-growth business aiming to offer differentiated solutions for brokers in both standard and non-standard risks.
