Will the coronavirus epidemic create a swathe of empty property on our highstreets and industrial parks? If the headlines are to be believed the UK property market will experience record levels of tenancy default and landlords beware the problems don’t end there.
The insurance market is suffering problems of its own. Shortage of capacity and rising premiums will add to the unwelcome cocktail.
Cornerstones top five tips to keep your property premiums to a minimum:
- Maintain alarm systems. Insurance underwriters want to know that an empty property is being protected from intruders. The alarm should be linked to a central station monitoring hub with the capability to respond to activations. The alarm could make a key difference in acceptability and keeping premiums to a minimum.
- Re-letting the property. Short gaps in the occupancy of an empty property will be tolerated by insurers. Make sure your letting agent has up to date literature, photos, virtual tours and draft contracts. Keep insurers informed of progress at 30 day intervals and keep up the pressure on your agents to find a tenant.
- Keep the empty property clear of combustible materials. Truly empty properties are less susceptible to arson. Not only the interior space but the external forecourts and back yards. Keep all bins locked and at least five metres away from the building
- Make regular visits. Leaving the empty property alone for long periods will attract vandals. Keep the property appearance clear of graffiti, litter, overgrown vegetation and broken widows. Malicous damage cover is usually excluded after 30-60 days of unoccupancy. Its in your interests to maintain the property in good order.
- Group properties together. Insurance rating for multiple properties including empty property can be lower than insuring property in isolation.
If your empty property is the only building to be insured please call Cornerstone for a quotation. We are here to help in this difficult time.
Tim Lee
Director Cornerstone Business Insurance