Insuring an Empty Commercial Property

Insurance changes when a commercial property becomes empty. Failing to tell your insurer, or to meet the conditions, can leave you without cover just when you need it.

Why empty is different

An empty building is a higher risk: greater exposure to vandalism, theft, water damage, squatting and undetected problems. Insurers respond with stricter terms, higher premiums, reduced cover, or specific conditions, and standard policies often limit cover once a property has been vacant for a set period.

Tell your insurer

You must notify the insurer when a property becomes, or is about to become, unoccupied. Not doing so can invalidate cover. The insurer will usually impose conditions.

Typical conditions

• Inspections: regular documented inspections of the property.
• Security: locks, alarms, and sometimes boarding or removing valuables.
• Services: draining down water systems or maintaining heating to prevent frost damage, and isolating utilities as advised.

Manage the void

Meeting these conditions protects your cover during a void, which is also when empty rates are mounting. Factor both into the cost of holding an empty property, and keep records of inspections. Speak to your broker as soon as a void is likely.

Does insurance change when a commercial property is empty?

Yes. You must notify the insurer, who will usually impose stricter terms and conditions such as inspections and security.

What happens if I do not tell the insurer a property is empty?

It can invalidate cover, leaving you exposed just when the risk is highest.