Insuring Your Vacant Property: Are You Covered?

A property left vacant, also known as ‘unoccupied’, presents a higher risk of security and safety issues, and hence poses a problem to insurance companies looking to provide your business with insurance cover. Fundamentally a business has less control over the management of a building if it is left vacant and hence is often powerless to prevent issues such as theft and vandalism occurring. The definition of what is classed as a vacant property can vary, but essentially it is a property that is ready for use but is currently not being used, and for insurance purposes this status is usually applied if the property is vacant for 30-60 days continuously.  

There are several reasons why a commercial property could become vacant, even if this is just on a temporary basis. This could apply to a property being prepared for sale, or awaiting a new tenant, it could also apply to a property being extended or refurbished, and it is common to find vacant properties where the previous occupant has gone out of business and no one really knows what is happening to the property. 

How does insurance cover a vacant property?  

In all these situations the property owner needs to have insurance in place, and for a vacant property you would normally be covered in the event of storm damage, floods, burst pipes, fire, theft, vandals and squatters. However, you would only be covered if you have put certain controls in place. For example, you wouldn’t be covered for damage or contamination where the building has been neglected and has deteriorated, or where windows or doors have been left open or unlocked. These are common occurrences where a building has become vacant and the property owner has not considered any security controls, or has underestimated the required security controls. 

What you can do to ensure you are covered on your vacant property insurance

In order to ensure you are covered under your insurance policy for a vacant property, you need to quickly put a plan in place to control the various security and safety risks a vacant property presents. These should include: 

• Security patrols – Either manned or as part of a dog security team, you should ensure a licenced and professional security services provider carries out routine mobile patrols of the entire building perimeter on a frequency identified by a considered risk assessment. This will seek to identify signs of weakness, or signs of security threats. 

• Health and safety monitoring – A nominated person should be responsible for carrying out visual health and safety checks on the property, such as structural condition and wear and tear on the fabric of the building, along with ensuring systems such as heating, gas and electric supplies, hot water and alarms are still operational.  

• Waking watch – Where there is an increased fire risk, a nominated person should be appointed to carry out fire risk monitoring on a routine frequency.  

• Access control – A system should be in place to control who has access to the building and how it is done. 

• Property maintenance – Someone should be responsible for carrying out routine property maintenance tasks to ensure the building is maintained as clean, functional and compliant, and therefore ready for sale or a new tenant at any time.  

• CCTV – You can set-up temporary CCTV systems to work alongside other security controls, and act as a deterrent to theft and vandalism as well as capturing important evidence in the event of a security breach or threat.  

• Key holding and alarm response – A nominated person should have responsibility for managing keys and who is approved to have one, and this is usually combined with a responsibility to respond to alarm activations at any time, whether false alarms or genuine security issues.  

Supporting you with managing the insurance needs of a vacant property

At Apardion we can work with you to design a suitable programme of security controls for your vacant property, based around a thorough risk assessment of the site. This will enable us to identify the specific threats you face and to tailor a programme of controls to ensure your vacant property is safe and protected around the clock. As an experienced security services provider in the Scotland region, we are able to provide ample and effective resources to carry out these important duties, and to ensure you are complying with the requirements of your insurance policies.  

Our aim is to ensure you can make a claim on your insurance should you need to, and in the knowledge that you have everything necessary in place when managing a vacant property. So if you need help and support when considering the insurance requirements of a vacant property, then contact our team today.