Unoccupied Commercial Property Insurance – Don’t be Vulnerable to Squatters

A recent change in legislation means unoccupied commercial properties could face an influx of unwelcome squatters. From the 1st September 2012 it became a criminal offence to squat in residential buildings in England and Wales, with perpetrators facing up to six months in jail and a maximum £5,000 fine. Whilst this is good news for owners of unoccupied properties in the residential sector, this legislation does not apply to commercial properties, which may now become more exposed as squatters seek alternatives.

A commercial property insurance policy will provide cover in the event of most perils but squatters can cause considerable damage, let alone the stress of having to deal with them. The interruption and cost to your business could be considerable.

Andy Miller, Allianz Property Risk Control manager, (who we use, among others, to underwrite commercial property insurance for our clients), warns that the new legislation “could lead to significant damage to commercial properties, such as that caused by fire whether deliberate or accidental. This could lead to serious disruption. Even more so, because with winter around the corner, the nights are growing colder and the hours of daylight are getting shorter.”

So what can you do to protect your unoccupied commercial property against potential squatters?

Firstly check your commercial property insurance policy. Make sure you are fully covered and that the sums insured are correct. For more advice on this, please call us and we can check your policy for you or advise on a more suitable commercial property insurance.

There are also some basic precautions you can take for unoccupied commercial properties in order to protect against squatters.

Ensure an adequate level of physical protection to windows/doors/perimeter.

Consider boarding up the windows and doors

Keep both intruder and fire alarm systems fully operational. (We can recommend some alarm companies who can protect you).

Remove any unfixed combustible materials from the premises and the surrounding areas.

Make sure you carry out frequent internal and external inspections.

Ensure that all CCTV equipment is in full working order. And make sure you monitor it!

Consider the installation of a temporary intruder alarm system while the property is unoccupied (recommended in accordance with the SSAIB code of practice for temporary alarm systems).

If the commercial property is especially vulnerable or of high value you could employ security guards – either for periodical visits or permanently based staff.

Make sure your sprinklers all work.

Turn off, drain down and secure any mains water supplies, tanks and pipework to prevent use or abuse by squatters.
If your commercial property is likely to be unoccupied for a lengthy period you may like to consider other physical security measures such as security shutters, security bollards and barriers.

What if your commercial property becomes unoccupied?

Our insurers require you to notify them if an insured property should become unoccupied. All our commercial property insurance policy wordings have conditions and obligations regarding unoccupied properties. If you would like us to examine your policy wording and ensure you are fully protected or to change your cover to an unoccupied commercial property insurance policy, please get in touch.