COVID-19 has led to the sudden, temporary closure of businesses all over the country. The UK government has not specified how long the lockdown will continue, so countless enterprises have had to shut their doors without knowing when they will reopen. Whether you rent or own your premises, you may have concluded your last day of trading with your usual end-of-day lockup procedures, unaware that the building may be vacant for a period of weeks or even months.

But is your commercial property secure enough to be left unoccupied for an extended period? And even if you think it is, would your insurance company agree? To answer this question, you have to do two things simultaneously: think like a thief, and think like an insurer. Sound like a tall order? Don’t worry, we’ve got you covered.

First, we’ll outline how your insurer will look at your situation, should the coronavirus lockdown lead to an insurance claim. Second, we’ll set you on course to protect your property against opportunists, thus avoiding the dreaded phone call to your insurer in the first place.

Why Do You Need Extra Security during COVID-19?

For starters, it’s useful to understand that for insurance purposes, vacant properties are considered higher risk than occupied properties. This is because they are more vulnerable to threats like theft, squatting, vandalism and arson. According to data collected from UK insurance companies, claims for damage and clear up expenses are higher and more frequent for vacant properties than for those that are occupied. This has implications for insurance premiums and claims, so if you haven’t notified your insurer of your closure yet, consider getting in touch to discuss any changes to your policy during the COVID-19 crisis. It’s also advisable to conduct regular inspections of your property throughout the period of closure, assessing new risk factors and taking action to remedy them.

How to Mitigate Risk to Your Property During the Lockdown

In the event that you need to make a claim, here are some specific factors that your insurer may wish to consider. Thinking through these factors before you have to make a claim may help you prepare your property in terms of risk management and loss prevention:

Leakage

A leak on the property that goes undiscovered for an extended period can be an expensive issue, and can result in hefty insurance claims. An insurer will want to know that you did everything in your power to avoid this situation arising and to mitigate the resultant damage. It’s important to inspect your property from top to bottom (literally from roof to drains) and make sure that there are no existing leaks, or water-drainage accidents waiting to happen. For example, do you have adequate drainage to cope with a flash flood? And do you have any stock or costly pieces of equipment stored at or below floor level? If so, consider storing them on shelves.

Fires

When an insurer learns of a fire at a commercial property, they know there’s a good chance that it was caused by arson. What’s more, according to insurers, a claim for fire damage is likely to be higher if arson was the cause than if the fire was accidental. This is because these fires typically happen late at night, so the fire is likely to spread before it is even discovered.

If your property is standing vacant, it’s essential that you investigate the potential risk factors that would make your property more susceptible to arson. For example, ensure that all rubbish is cleared from the property, and that your garden, if you have one, is not overgrown.

Other risk factors include exposed wires and malfunctioning electrical fittings, which can either start fires on their own or exacerbate fires started by arsonists. It’s also a good idea to avoid storing large volumes of stock, especially if it is flammable. Testing that your fire alarms and smoke detectors are in working order is a no-brainer, but if it’s been a while since you did these important checks, now is a great time!

 Vandalism, Theft and Squatting

An empty property is far more likely to fall prey to opportunists than a property that shows signs of habitation, especially at night. So, not surprisingly, one of the most effective ways to reduce the risk that theft, vandalism and squatting pose to an unoccupied property is to avoid creating the impression of neglect. This means maintaining the property exterior to avoid a derelict appearance. You should also keep records of everyone who has keys to the building, and log all access times, so that you can demonstrate due diligence if your insurer requires it. If you are unlucky and your vacant building is burgled, your insurance company will want to know that the building was properly protected with the appropriate locks and other security measures, so it’s worth checking all your access points regularly to ensure that everything is secure. Rather safe than sorry!

These are some of the main bases that your insurer will want to cover, should you call in with a claim related to your property standing vacant during the COVID-19 crisis. For a more comprehensive overview of how to secure your vacant property, both now and in more ‘normal’ times, check out our vacant property security checklist. We’ll help you think like a thief (or arsonist, or squatter) and stay one step ahead.

How Property Guardians Can Protect Your Property and Save You Money

Of course, the first prize is avoiding having to make an insurance claim altogether. You could pay for expensive 24-hour manned security or install expensive alarm systems and CCTV, but with no sense of how long this period of vacancy might be, you may be reluctant to invest in all the bells and whistles required to turn your business premises into Fort Knox.

There is a cost-effective way to secure against the most common threats to vacant properties, and that’s to remove the ultimate risk factor from the picture. What if your property were not vacant? Property guardianship is a live-in form of security that costs you nothing. If this is of interest to you, register your property with us and we’ll call you back today.

Please note that with respect to COVID-19, we place the safety of our guardians and clients first. This means government guidance on social distancing, and other industry-specific measures, are strictly adhered to.