Did you know?
Standard home insurance only insures you if your home is empty for up to 30 or 60 days, depending on the terms. So, if anything unfortunate occurs outside this period, you won’t be covered by your home insurance policy. This is because the chances of a break in and theft increase when your home is empty for an extended period. That is why it is important to consider unoccupied or vacant property insurance.
As of October 2, 2023, there were 699,126 vacant homes in England. This number represents a 3.4% increase compared to previous data. That’s an increase of over 22,000 properties as vacant dwellings, according to information from the Department for Levelling Up, Housing and Communities.
Of these, 261,474 have remained unoccupied for six months or longer, being classified as long-term vacant. That represents a 5.4% rise from the previous year. During economic downturns, vacant properties may remain unoccupied for longer periods, increasing the risks associated with prolonged vacancy.
Kelly Haynes, Risk Management Advisor at RiskSTOP1, an organisation that helps policy holders to understand and implement risk improvement, has issued a warning. She said “Vacant buildings face numerous risks, such as fire, theft, vandalism, and water damage. Without regular care, abandoned buildings can attract arson, theft of metals, and general neglect, leading to significant deterioration over time.”
The fact that there has been an increase in the number of vacant properties in England highlights the importance of having the correct, unoccupied or vacant property insurance.
That is why it is good advice to use a knowledgeable local insurance broker to ensure that you have appropriate cover.
Fire and Security Risks
Fire is the primary risk for these properties. Vacant properties are more vulnerable to fires, which may be started accidentally, intentionally (arson), or through natural causes. Without regular oversight, small issues like electrical faults or minor damage can escalate into significant fires.
Under the Regulatory Reform (Fire Safety) Order, those responsible for commercial properties must conduct fire risk assessments. This mandatory process involves identifying hazards, assessing risks, and implementing safety measures, with regular reviews and updates.
Unoccupied buildings are attractive targets for vandals and thieves. The lack of regular activity makes it easier for criminals to break in, steal valuable materials (like copper piping), and cause extensive damage.
The high value of metals has led to an increase in break-ins to steal copper cabling, pipework, and other non-ferrous metals. Once targeted, properties often become repeat victims. Tight security is essential to protect these properties from such risks.
Water damage risks increase
Leaks and plumbing issues in a vacant property may go unnoticed for extended periods, leading to severe water damage, mould, and structural problems. This kind of damage is often more extensive and expensive to repair by the time it is discovered.
Environmental Hazards
Vacant properties are more susceptible to environmental hazards like flooding, especially if maintenance of barriers and drainage systems is neglected.
Neglect
Vacant properties may suffer from neglect, with issues like pest infestations, structural deterioration, and overgrown vegetation. These factors can cause significant damage over time, making the property more hazardous and costly to repair.
Delayed Repairs
Problems identified in vacant properties are often not addressed promptly, allowing them to worsen and become more expensive to fix. This delay increases the potential for damage and higher insurance claims.
Liability Concerns
Attractive Nuisance: Vacant properties can attract unauthorized visitors, including children, who may be injured on the premises. Property owners may be held liable for injuries sustained, leading to increased insurance claims.
Unauthorised Occupancy: Squatters may occupy vacant properties, leading to legal complications and additional damage. Evicting unauthorised occupants can be costly and time-consuming.
Recommended Actions
Effectively managing vacant properties requires proactive security and maintenance measures. Here are key steps to ensure these buildings remain secure and compliant with safety standards:
- Appoint a Responsible Person: Designate an individual to oversee the property. This person should conduct regular inspections, control access, and promptly address any issues.
- Control Access: Manage keys and access points. Ensure all external doors are secured with BS 3621-compliant locks. Vulnerable windows should be boarded up with exterior-grade plywood or fitted with shutters.
- Regular Inspections: Conduct and document inspections at least weekly. These inspections should be thorough, covering both internal and external areas, to identify and resolve issues like graffiti, waste building up, or signs of forced entry.
- Utility Management: Isolate non-essential utilities to prevent hazards. Turn off and drain water systems, and disconnect gas and electricity unless needed for essential services like heating, fire, or security systems.
- Remove Combustibles: Eliminate all combustible materials, including flammable liquids and waste, from the property. Keep the perimeter clear of combustibles such as waste and wooden pallets to reduce fire risks.
- Perimeter Security: Ensure the perimeter is secure by repairing and reinforcing fencing, installing security lighting, and maintaining functional CCTV systems. Consider temporary alarm systems specifically designed for vacant properties for added security.
- Specialist Services: Engage specialist contractors for enhanced security and risk management services. This involves securing doors and windows, installing temporary alarms, and conducting routine site checks and upkeep.
Health and Safety Considerations
Health and safety should be taken into account as empty properties can pose risks for unauthorised individuals such as intruders, as well as authorised visitors such as contractors and potential tenants. Ensuring the safety of these individuals involves providing clear warnings about specific dangers, securing hazardous areas, and maintaining records of all visitors.
Property Guardian Schemes
Property guardian schemes offer an alternative approach to managing vacant properties by placing residential occupiers in empty buildings to prevent vandalism and unauthorized entry. However, these schemes introduce new risks that require careful management and consideration.
“The rising number of risk improvements for vacant properties underscores the growing awareness and need for effective risk management. By securing buildings and conducting regular inspections, property owners and managers can mitigate the risks associated with vacant properties,” Kelly Haynes advised.
Always advise your insurers if your property is likely to become vacant for longer than 30 days. Talk to the expert teams at Lloyd & Whyte Community Broking to ensure that you have the most appropriate and adequate insurance cover such as unoccupied property insurance for your vacant property.
To discuss your insurance options for your unoccupied property, please contact us.
1. https://www.riskstopgroup.co.uk/