Owning a property comes with responsibilities and managing unoccupied properties presents unique challenges. Whether your property is temporarily vacant between tenants, undergoing renovations, or waiting to be sold, leaving it unoccupied increases the risks of damage, theft and other liabilities.
In this blog, we’ll explore why unoccupied properties require special attention, the risks they face and strategies to effectively manage and protect them.
Why Do Unoccupied Properties Pose Higher Risks?
Unoccupied properties are more vulnerable than those that are regularly occupied and monitored. Some of the key risks include:
1. Increased Risk of Theft and Vandalism
Vacant properties are easy targets for thieves and vandals, especially if it’s obvious that the building is unoccupied. Missing items, broken windows, or graffiti can lead to significant repair costs.
2. Fire and Water Damage
Issues such as faulty wiring, leaks, or burst pipes can go unnoticed in an unoccupied property, leading to extensive damage before being discovered.
3. Liability Risks
An unoccupied property can still pose hazards to third parties. For example, an injury on the premises could result in legal and financial liability for the owner.
4. Loss of Standard Insurance Cover
Most standard property insurance policies reduce or remove coverage if a property remains unoccupied for more than a specified period, often 30 to 60 days.
How to Effectively Manage Unoccupied Properties
1. Secure Comprehensive Insurance
Specialised Unoccupied Property Insurance is essential to ensure continued coverage during periods of vacancy. This type of policy provides protection against risks like fire, theft and malicious damage.
2. Conduct Regular Inspections
Visiting the property regularly helps you identify and address issues early, such as signs of break-ins, water leaks, or structural damage. Alternatively, hire a property management service to conduct inspections on your behalf. Typically an insurer will require these visits to be made weekly and a log to be kept of the same.
3. Secure the Property
Enhance the security of your unoccupied property with measures such as:
- High-quality locks on doors and windows.
- Alarm systems and CCTV cameras.
- Boarding up vulnerable entry points if the property will remain vacant for an extended period.
4. Maintain the Property’s Condition
Keep the property in good condition to deter intruders and avoid damage:
- Maintain the exterior, including landscaping and clearing gutters.
- Ensure heating systems are on a frost-setting in colder months to prevent frozen pipes or drain the systems entirely
- Remove mail or deliveries that might signal the property is vacant.
5. Turn Off Utilities
Shutting off non-essential utilities like water, gas and electricity can help prevent accidents, such as leaks or electrical fires.
6. Notify Key Stakeholders
Inform neighbors, local authorities, or nearby businesses that the property is vacant. They can help monitor the property for unusual activity.
Legal and Financial Considerations
1. Comply with Lease Agreements
If the property is leased, review the terms to ensure compliance during periods of vacancy.
2. Understand Local Regulations
Some areas have regulations for vacant properties, such as security or maintenance standards. Familiarise yourself with these to avoid fines.
3. Prepare for Reoccupation
If the property is being prepared for a new tenant, ensure it’s cleaned, repaired and ready to meet health and safety requirements.
The Role of Specialised Insurance
Unoccupied Property Insurance is a critical component of managing vacant properties. It fills the gap left by standard policies, providing coverage for:
- Fire, flood and storm damage.
- Theft and vandalism.
- Legal liability for injuries or damages involving third parties.
Protecting Your Investment
Managing an unoccupied property requires proactive measures to reduce risks and liabilities. By securing the right insurance coverage, conducting regular inspections, and maintaining the property, you can protect your investment and ensure it remains in good condition for its next use.
At Sustain Insurance Brokers, we specialise in providing tailored solutions for property owners, including comprehensive Unoccupied Property Insurance. Contact us today to safeguard your unoccupied property and gain peace of mind.
