What small print will apply to an unoccupied buildings policy? Underwriters willing to offer cover for unoccupied buildings will apply some special conditions.
Inspection warranty
Quite often the underwriter will specify that you or someone acting on your behalf will need to inspect the property every seven or fourteen days. We suggest that in complying with this warranty you keep a record of the inspection dates so that you are able to produce them as evidence in the event of a loss.
Water systems
It is often a condition of this type of insurance that all of the water systems within the property are drained down and the main supply isolated.
The amount of damage caused by burst pipes during cold weather or by persons damaging the existing pipe work can run to many tens of thousands of pounds very quickly. Insurers insulate themselves from this type of loss by applying this warranty.
Electrical systems
In the same way as an underwriter might expect to see water systems drain down, it is highly likely that electrical systems should be isolated as well.
This is for two main reasons, firstly, that fires caused by electrical faults are reasonably common and unoccupied property quite often suffers from mild infestations of vermin, a major cause of electrical fires.
What small print will apply to an unoccupied buildings policy? Underwriters willing to offer cover for unoccupied buildings will apply some special conditions.
Secondly, property is far less likely to be entered if there are no lighting or electrical systems for the intruders to use.
These conditions can be waived if the property has an operable alarm system, possibly monitored by a central station, which in itself, provides a reasonable deterrent.
Contractor exclusion
Insurers are aware that quite often the reason for properties being unoccupied is that they are pending building works.
For this reason they quite often exclude cover when building works are ongoing and you should not rely on an unoccupied building policy to cover your obligations under a JCT contract.
In addition, your obligations under the JCT to insure the works, cannot be picked up under this type of insurance contract. Therefore you risk not being able to uphold your agreements under the JCT or indeed, having no cover at all if the underwriter considers a breach of this condition to be sufficient to void the policy altogether.
Additional security measures
Quite often an underwriter will include a condition to remove any waste from the property and to ensure that the letterbox is sealed up to prevent junk mail piling up in your absence.
In extreme situations, underwriters may stipulate that the property be boarded up altogether to prevent unauthorised access.