There is a growing number of unoccupied premises. What are the insurance implications?
Unoccupied premises are an inevitable feature of the recession. The responsibility for these rests with the owner or the lessees dependent on the position at the time. Evidence shows that the prospect of damage or injury arising from empty buildings is high, even if only temporarily vacant, e.g. prior to sale or refurbishment. Each year there are around 9000 fires in empty buildings. Other common problems include theft of contents or fixtures, vandalism, fly tipping and occupation by squatters or travellers. Empty buildings are also at risk of water damage due to inadequate maintenance/repairs, especially when coupled with infrequent site visits.
Owners have a legal ‘duty of care' to third parties; such as authorised people entering the premises, whether they are employees, estate agents, surveyors, buyers, etc or even trespassers including children who may simply use the area as an unofficial playground.
A new Code of Practice has been produced by the Fire Protection Association / InFiReS with contributions from Aviva, the insurer.. It provides solid and practical advice on the management and protection of empty buildings against theft, arson and vandalism.
There is a very useful check list covering areas such as
- Administration
Health and Safety
Fire Safety
Physical security
Other security measures
Because of the increased risks involved, premiums charged by insurers are often higher than when they are occupied. In addition special terms are often applied. If a building owned or occupied by you is vacant even if temporarily, you should let us know immediately so we can tell your insurers. T is a good idea however to look at the check list to make sure you are immediately taking sensible precautions. This is available at www.aviva.co.uk/risksolutions/pdf/empty-buildings.pdf.
There are also specialist companies that offer services that will help you protect your premises if you wish. We can put you in touch with one of these if you wish.
