Unoccupied Property Insurance for Local Authorities

Why do I need cover?

Unoccupied buildings insurance provides cover for the many situations that can arise when a property is empty for more than 30 days. For example, if the client has gone into long term care, or has recently passed away.

A typical insurance policy does not necessarily provide adequate cover for vacant homes and some insurers may refuse to cover a property left unoccupied for 30 consecutive days or more.

As a deputy you have to act in the best interests of the client and protect their property whilst they are unable to do so themselves.

What does it cover?

The policy covers fire, theft and damage. There is no requisite for draining the water in a property but good practice dictates that should be undertaken where a property lays empty for some time.

Do I need to visit?

No. The policy does not require regular visits to check on the property, though we would recommend that you carry out a visit at least once every couple of months.

How much?

Finders offer a competitive rate that can be paid monthly or yearly.

Prudence

Empty buildings can give rise to claims from various sources.

To help you understand what these are and what you can do to try and reduce incidents, we have listed a number of the common risks we see with empty buildings. While our policy will respond to a loss (subject to policy terms and conditions) it can’t replace the lost time you will incur in the aftermath of an incident, so it really is a case of “prevention is better than cure.”

Risk Management Steps

Thieves look for easy pickings. So, where possible, making the building secure against unauthorised entry at the earliest opportunity, is good practice. We recommend as a minimum requirement that all ground floor and other accessible doors and windows are securely locked and letterboxes are sealed. All locks should be changed if possible. Sealing letterboxes can prevent would-be arsonists.

If you can, arrange regular inspections or have a friendly local neighbour keep an eye on the property or for them to know who to call in the event of an incident.

If thieves do break-in, they could attempt to remove the copper piping, having little regard for the resultant water escape, or worse still, gas. You should have all water supplies turned off at the mains and the system drained down. During winter months, there is an increasing incidence of burst pipes, so a drain down would greatly reduce burst pipes.

All gas supplies should also be turned off at the mains and pipes purged of existing gas.

Arsonists or thieves attempting to cover their tracks may look to set fire to the property, so all unnecessary combustible waste materials that you are legally entitled to remove should be safely removed as soon as practicable.

Unless you are maintaining a fire/intruder alarm system, it is wise for all electrical supplies to be turned off at the mains to reduce the risk of an electrical fire starting. You may wish to reinstate the electrical supply temporarily for the purposes of periodic checks of the property or other visits to the property.

Significant Features and Benefits	Significant Exclusions and Limitations
Loss or damage by any cause, unless excluded to any residential property in the United Kingdom for which you are contractually responsible for as part of your duties as an Executor.	The Excess as shown in the Schedule, this being the amount or amounts which will be deducted from each and every claim at each separate location.
Wide definition of buildings including: adjoining or communicating extension and annexes, domestic outbuildings, green houses and garages, car parks, fixed tanks providing fuel to The Premises, cess pits, septic tanks, terraces, patios, driveways, footpaths, garden walls, fences, gates and hedges, trees, shrubs, plants and turf used in landscaping, swimming pools, hot tubs and tennis courts, ornamental ponds and fountains, garden furniture including ornaments, statutes and the like, air- conditioning systems, pool maintenance equipment and fitted kitchen appliances or similar items, satellite dishes, telecommunication aerials, aerial fittings and masts, video, audio and building management and security systems and equipment, street furniture and lamp posts, solar panels and wind turbines attached to the building where they are not more specifically insured, interior decorations, including carpeting in communal areas.	Damage caused by or consisting of: an existing or hidden defect, gradual deterioration or wear and tear, frost or change in the water table level, faulty design or faulty materials used in its construction, faulty workmanship, operating error or omission by You or any Employee Damage caused by or consisting of corrosion, rust or rot, shrinkage, evaporation or loss of weight, dampness or dryness, scratching, vermin or insects, mould or fungus, change in temperature, colour, flavour, texture or finish, nipple or joint leakage or failure of welds, cracking, fracturing, collapse or overheating of a boiler, vessel, machine or apparatus in which internal pressure is due to steam only and any associated piping mechanical or electrical breakdown or derangement of the Property Insured.
Can also include any household contents where you are responsible for such items.	Contents does not include Money over £250, securities (stocks and shares) and documents of any kind; Motorised vehicles, aircraft, boats, boards and craft designed to be used on or in water, caravans and trailers, and the parts, spares and accessories of any of these; any part of the structure of the Home including ceilings, wallpaper and the like; items used for business or professional purposes; or any living creature.
Claims Preparation Clause, for any loss up to £1,000 the policy will pay up to £750 to assist you in the necessary work undertaken to prepare a claim.
Automatic Reinstatement of the sums Insured following a loss.	The insurers’ liability is limited to £1,000,000 in respect of total reinstatement for any single property unless otherwise agreed. If you believe the reinstatement value is greater than £1,000,000 you must notify the insurer.
Buildings Awaiting Sale – if damage occurs after you have agreed a sale but not yet completed, the policy will indemnify the buyer until date of completion.
Consecutive Damage Cover up to 72 hours. Contractors Interest.
Contract Works – covers for extensions, alterations and refurbishment.	Will not cover where the contract is over £100,000. The first £500 in respect of each Theft/Malicious Damage claim.
Damage to gardens and grounds.	Will not pay more than £25,000 any one claim.
Clearing of drains, sewers, gutters following Damage.
Environmental Improvements Costs; increased costs following damage that are aimed to reduce environmental harm by improved energy efficiency.	Initial claim must be over £10,000. Maximum cost of this extension is an additional 5% of the claim, or £2,500 whichever is the lower. Does not include the additional cost of complying with any European Union legislation, Act of Parliament, or byelaws of any public authority, Work You had already planned to be carried out prior to the Damage, additional costs for replacing undamaged property.
EU and Public Authorities Clause – following Damage, pays for extra costs to meet with Authorities requirements.	In respect of undamaged portion of the Buildings, a maximum 15% of the amount insurers would have paid had that part of the property been totally destroyed.
Fire & Security Equipment – costs incurred to reinstate such following Damage.	We will not pay more than £50,000 and one claim.
Fly Tipping.	We will not pay more than £15,000 any one claim, £50,000 in total any one 12-month period.
Further Investigation Costs.	We will not pay more than £5,000.
Gardening Equipment.	We will not pay more than £10,000.
Inadvertent Failure to Insure; covers assets you had an obligation to insure but inadvertently left uninsured.	We will not pay more than £250,000.
Illegal Cultivation of Drugs.	We will not pay where you have not conducted and maintained a log of internal inspections at least once every six months and retain a log for at least 24 months. We will not pay where you have let to tenants and not obtained a written formal identification record of the tenant or a written employer’s reference or have verified bank details of the tenant.
Inadvertent Omission to Insure; cover unidentified assets at the time of the loss.	We will not pay more than £1,000,000 for any one loss.
Local Authority Rates	We will not pay more than £5,000.
Loss Minimisation Costs and Prevention.	We will not pay more than £5,000.
Loss of Rent/Alternative Accommodation.	We will not pay more than £200,000.
Metered Services	We will not pay more than £25,000.
Munitions of War	We will not pay of the damage is as a result of detonation more than one mile from the boundary of the Premises. We will not pay of the detonation is as a result of a state of war current at the time of Damage.
Non-Invalidation
Other Interested Parties
Privity of Contract	We will not pay for any premises disposed of more than 7 years prior to the start of the current period of insurance. We will not pay more than £1,000,000.
Professional Fees
Reinstatement of Data	We will not pay more than £5,000.
Reinstatement to Match
Services; in adjoining yards, roadways, underground.
Subrogation Waiver
Subsidence	We will not pay the first £1,000.
Temporary Removal
Trace and Access
Tree Felling and Lopping	We will not pay more than £500 any one claim or more than £2,500 any one period of insurance.
Underground Services