After this 30 day period has lapsed however, you may be into new territory of greatly reduced levels of cover, greatly increased premiums and much anxiety about getting your property re-let to the right person. Many landlords have been in this position before, and the one thing that unites them, is if their property goes empty long enough, they might take anybody to get that cash flowing coming in again. This is where landlords need to very carefully – anything other than a professional working tenant will increase the premium due to the perceived extra risk by insurers. Take DSS, Students, Housing Association or Asylum Seekers for example, and expect your insurance premium to rise and rise drastically!
Commercial Property Owners and Unoccupied Building Insurance
Although Commercial Property Owners usually have much longer lease agreements that that of their residential counterparts, they can still be affected from time to time of periods of unoccupancy. When commercial properties do become empty, they usually are empty for much longer also. This is due to their nature and the need for ‘gutting out’ or change of use can add to this period of unoccupancy. It is therefore very important to make sure the correct commercial property unoccupied building insurance is in place. Once a commercial property becomes empty, it will more than likely be the case that the cover reduces to Fire, Lightning, Explosion and aircraft cover (or falling devices) only. Some insurers will allow for adding impact cover (cover for vehicles impacting the buildings) for an additional premium, but this would normally have to be specifically requested. As soon as the property becomes empty once a tenant vacates, it is important to tell the insurer of this change. Some insures will then be able to note the change and inform you of any extra conditions you must comply with. Some insurers will even give you a certain amount of time to find alternative cover – failure to tell them and you run the risk of never knowing any of this information and falling foul of any conditions that would normally be imposed.