What are the insurance requirements for vacant properties?

When a property becomes vacant, it faces a unique set of risks that necessitate special attention from both property owners and their insurers. Without regular use and occupancy, these buildings are more vulnerable to issues such as vandalism, theft, fire, and environmental damage.

To mitigate these risks, insurance companies often require certain updates and precautions to be taken in order to maintain or extend coverage.

Increased risk factors

Vacant buildings are particularly susceptible to a variety of hazards. With no occupants to monitor the premises, incidents like burst pipes, electrical faults, or break-ins can go unnoticed, leading to extensive damage.

Furthermore, vacant properties are often targeted by criminals for theft, vandalism, or illegal occupation (e.g., squatting). As a result, insurers view these buildings as higher risk and impose stricter conditions on the property owner.

What are common insurance requirements for vacant properties?

Insurance companies typically enforce a set of requirements to ensure that the vacant property is adequately protected, such as:

Securing utilities: All water supplies, except those for fire sprinkler systems, should be turned off and drained. If the building is vacant during colder months, the heating system may need to be maintained at a minimum temperature to prevent freezing.

Waste removal: To reduce fire risk and other hazards, combustible materials, gas bottles, and waste must be removed from both inside and outside the building.

Electrical and gas supply management: Unless needed for essential systems like fire alarms or theft detection, electrical and gas supplies must be turned off at the mains. Temporary reinstatement is allowed for periodic checks or specific visits.

Fire and security systems: All fire and theft protection equipment must be operational, and any maintenance agreements should be upheld to ensure these systems remain effective.

Securing the property: Insurers often require buildings to be physically secured with high-grade locks, window reinforcements, and boarding-up measures if necessary. This reduces the likelihood of break-ins or squatting.

SSAIB-accredited alarms: Properties with higher declared values, especially those over £1 million, may require monitored alarm systems compliant with SSAIB standards.

Regular inspections: Vacant properties must be inspected internally and externally every 14 days to ensure that these security and safety measures are maintained.

Why is compliance essential for property owners? 

1. Avoiding increased premiums and claim denials

Property owners who fail to comply with the insurance requirements may face increased premiums or, worse, have their claims denied in the event of an incident, leaving them financially responsible for damages.

2. Legal duty of care

Owners and managers of empty properties have a duty of care to anyone entering the building, even if they haven’t been invited to the premises. Failing to comply with required measures can expose them to liability claims, leading to significant financial and legal consequences

3. Compliance with local authorities 

Local authorities can impose additional measures for vacant properties when increased risks are identified, often focusing on public safety hazards. While many requirements align with insurance conditions, non-compliance can result in fines, legal penalties, or affect insurance coverage if risks lead to an incident.

4. Preserving property value

Neglecting to secure and maintain a vacant property can lead to deterioration, which can significantly reduce its market value. Keeping up with insurance requirements helps ensure that the property remains in good condition.

How RemoteZone can help

RemoteZone provides a flexible security solution that meets the stringent requirements insurance companies set for vacant properties, helping to lower premiums and prevent costly claims.

By offering 24/7 monitoring through a UK-based NSI Gold alarm receiving centre, RemoteZone ensures your property is continuously protected against risks like vandalism, theft, and fire. Its wireless, self-powered system eliminates the need for mains power, while real-time alerts and rapid response capabilities give you the peace of mind insurers demand.