Managing unoccupied properties, whether commercial or residential, requires careful attention to security, maintenance, and insurance needs to protect the investment and comply with insurance policy requirements. So, if you have to leave your residential or commercial property empty for more than a month or so, here are a few unoccupied property insurance tips.
When might you need empty property insurance?
There are any number of reasons why a property you own has to be left unoccupied, including:
Residential
- you are having to work away from home – in this country or abroad – for a month or more;
- a property in which you have an interest is subject to probate and awaits a conclusion pending its final sale;
- you are moving house and taken up residence in your new home, awaiting the sale of the previous property;
- you have called in the builders to make extensive renovations or build an extension that leaves the property temporarily uninhabitable.
You will need unoccupied property insurance.
Landlords/commercial
- you are the landlord of property for which one tenancy has just concluded and you are awaiting new tenants taking up residence;
- your premises has to temporarily close down (such as what happened to some businesses during the pandemic).
You will need unoccupied commercial property insurance.
Why do you need unoccupied property insurance?
Whatever your reason for leaving the property empty for a while, you might be tempted into thinking that the regular home insurance, landlord insurance or business property insurance which currently protects the premises simply continues as before.
Closer examination of that insurance policy, however, is almost certain to reveal that cover lapses– or at least becomes severely restricted. For example, with a residential property, typically, once it has been left empty for 30 to 45 consecutive days or so (the particular interval being determined by different insurers’ specific policies), the cover will become severely restricted.
If you are vacating your property for longer than a month or so and want to investigate further the need for unoccupied property insurance, you might want to get in touch with us here at Cover4LetProperty, where we are able to arrange tailor-made cover to suit your needs.
Why does that standard form of insurance lapse?
Whilst the biggest single tip is the suggestion that you arrange purpose designed unoccupied property insurance, it might also be helpful to understand why that is necessary.
The answer is quite simply because of the changed risks and perils faced by your property – whether residential or commercial -once it is left unoccupied:
- with no one at home, or responsible for the day-to-day management of the premises, a relatively minor fault or failure may develop into a full-blown crisis unless it receives immediate attention and repair;
- a small water leak, unchecked, can cause a lot of damage, for example;
- the risk of fire – sparked by a faulty electrical connection or gas supply for instance – is considerably higher in unoccupied premises, where there is no one to raise the alarm; and
- unoccupied property typically attracts all manner of unwanted attention – encouraging theft, vandalism, squatters and other intruders.
Recognising the significance of these additional risks, insurers reduce or allow standard cover to lapse, so that unoccupied property insurance is necessary to restore the safeguards the premises require.
Tips on the care of your empty property
Appropriate insurance represents only half of the picture – the other half is very much down to your own, essentially common-sense precautions. Reasonable steps to mitigate the risk of loss or damage, after all, is something typically expected by any insurer.
What form might some of these precautions take?
Secure the Property
- Locks and security systems: Ensure that all doors and windows are securely locked with high-quality locks. Consider installing security systems that include alarms and CCTV cameras, which can deter intruders and provide evidence if a break-in occurs.
- Regular checks: Arrange for regular visits to the property to check for any security breaches or maintenance issues. This not only helps in early detection of problems but is typically a condition of your insurance policy.
- Boarding up: For properties that will be vacant for a long period, consider boarding up windows and doors to prevent unauthorised access.
Maintain the Property
- General upkeep: Regular maintenance such as mowing the lawn, clearing gutters, and removing any debris can prevent the property from looking abandoned and reduce the risk of vandalism.
- Plumbing and heating: To avoid issues such as burst pipes in colder months, it’s advisable to keep the heating on at a low setting or completely drain the water system. Regularly check plumbing for leaks or blockages.
- Electrical systems: Ensure all electrical systems are safe and in good working order. Consider turning off electricity if it is not necessary, but maintain enough power for security systems and lighting.
Insurance requirements
- Notify your insurer: Inform your insurance provider that the property will be unoccupied.
- Compliance with policy conditions: Ensure you comply with all conditions of your insurance policy. Failure to do so could result in a refusal to pay out for any claims.
Legal and Safety Compliance
- Fire safety: Test all smoke alarms and replace batteries regularly. Remove all flammable materials from the property to reduce the risk of fire.
- Building regulations: Keep the property compliant with all local building codes and regulations. This includes securing the structure and maintaining all exits and entryways.
Consider hiring a property manager
If managing the property yourself is too time-consuming or complex, consider hiring a professional property management company. They can handle everything from security to maintenance and ensure that the property remains in good condition.
Plan for the future
- Regular assessments: Regularly assess the condition of the property and plan for any necessary renovations or updates. This can be crucial for commercial properties to remain attractive to future tenants or buyers.
- Market the property: If the property is to be sold or rented, keep it presentable and consider staging it to increase its marketability.
Environmental controls
- Humidity and ventilation: Manage humidity levels and ensure proper ventilation to prevent mould and dampness, which can cause significant damage over time.
By following these tips, owners of both commercial and residential unoccupied properties can ensure their buildings are secure, maintained, and compliant with legal and insurance requirements. This proactive approach not only helps protect the property but also maintains its value over time.
Do you need help or have questions?
Finally, if you have any questions relating to your unoccupied commercial or residential property, please feel free to contact us on 01702 606 301. We will be very happy to help.
