Insurers don’t like vacant properties either!
As if it isn’t bad enough that your precious property asset is unoccupied, but there are some matters you cannot ignore or take for granted.
Not adhering to your insurance company’s vacant property policy terms will likely have dire consequences when you next make a claim.
Insurers’ policy terms and condition are broadly similar from one to another. However they do and can vary, so when your property becomes vacant, you should check what your policy says to make sure you understand what is required of you.
A very brief outline of what you will likely have to consider are:
- Visit the premises with internal and external inspections (to be logged) at least every 7 days.
- Remove all combustible waste both externally and internally.
- Seal all letter boxes.
- Board up all accessible windows and doors.
- Turn off services.
Insurers will always be prepared to discuss specific issues you may have in complying with their policy terms and may relax their position.
- Always make sure the insurers are advised that your property is vacant as soon as you become aware.
- Always make sure that you are absolutely clear what is required of you until it becomes occupied again.
- If your policy terms and conditions are on a “recommendation basis” in relation to your risk management duties when your property is unoccupied, be absolutely sure what is specifically required of you. It does not mean you can be completely inactive or be selective with what you do.
Failure to comply with the insurers terms without their specific agreement will very likely result in the insurer refusing to pay your next claim.