Why should your empty property be insurance compliant?

Vacant property owners are substantially more likely to need to make an insurance claim because any empty building without heating and lighting is exposed to greater instances of intrusion, crime, vandalism and environmental damage such as water ingress, mould and damp.

Insurers place strict caveats on their vacant property insurance, with the requirement that every aspect of your property, from the standard of door locks to the type of alarm system you have installed, remains fully compliant.

Absolutely. Damage to a vacant property can be severe and mean that the costs of bringing the building back into a habitable state are prohibitively high and potentially higher than the market value.

Insurance coverage is vital for every vacant/void property or site, whether residential or commercial. It provides a lifeline for owners who find that their property has been exposed to arson, material theft, roofing damage during high winds, vandalism or serious flooding.

Compliance can be complex, with technical terms, specifications and requirements all linked to meeting the conditions of a vacant property insurance policy. Our experts can work through the exact wording to indicate where changes are required, if at all, for example replacing locks, preventing access via removable glazing, or isolating utilities to minimise the risk of fire and flooding.

Many property or site owners are caught out when they need to make a claim, not having realised that a minor issue renders them non-compliant and, therefore, without any financial protection.

Rebuilding or restoring a damaged or vandalised vacant property can cost you tens of thousands of pounds, where there is a condition within your insurance small print that you have not met, and you will need to cover the cost of repairs yourself.

Another advantage of compliance assistance is that you can often negotiate down vacant property insurance premiums by demonstrating that you have applied best practices in risk mitigation, security controls and deterrents to avoid criminals targeting your empty building.

Discovering that your vacant property insurance is invalid can be crushing, especially following on from distressing serious damage to your empty building.

Our vacant property compliance teams deliver:

• Full property inspections to assess areas of concern or security equipment that do not comply with your insurance terms.
• Comprehensive reports to identify the actions required, in order of priority, and advice on the various solutions available to suit your budget.
• Ongoing routine inspections to determine any hazards or changes to the property condition requiring attention.

We support vacant property owners taking out insurance for the first time, those renewing coverage for a longer-term vacant building, or existing property owners keen to find ways to reduce the cost of vacant property insurance premiums.

Vacant property insurance has strict conditions related to health and safety, protection of the public and securing the integrity of the property and any related fixtures or materials.

Insurance providers commonly reject claims due to unaddressed fire hazards, poor maintenance, a lack of inspection logs, non-advised changes, intact utility/power supplies causing a fire or flood, substandard security, or the absence of fire/smoke alarms or CCTV.

If a claim is rejected, the insurance will not pay anything towards the cost of repairs, leaving you to either cover the expense yourself or sell the property to recoup what you can.

Understanding the terms of your insurance and ensuring you are fully compliant is a significant advantage in terms of peace of mind, ongoing costs and having financial protection available as and when you need it.