There could be any number of reasons why a property may become vacant. The property could be a recent purchase by a landlord and is undergoing renovation prior to either letting it or selling it on. The property owner may have moved on and their current property has become empty until a new purchaser is found. The property owner could be erecting a new extension and has decided to move out of their property whilst the works are being carried out. What ever the reason it is still crucial to ensure that the empty property is sufficiently insured. If there is a mortgage outstanding on the building then the lender will insist on some form of insurance cover on the premises.

There are specialist insurance companies and brokers in the UK that specifically cater for the needs of a property owner with an empty building. Insurers and brokers that offer unoccupied property insurance quotes will normally have extensive knowledge on this subject and can help with risk management advice. Under an empty property insurance contract, the terms and conditions will differ from those of a standard home insurance policy. Get your advisor to go through with these in detail. There could be conditions on locks, how the water is left and how often the premises need to be visited etc. These conditions will vary from insurer to insurer.

Normally a property may be empty for 3 to 6 month but in certain scenarios it could be vacant for a year or even longer. If the property owner is certain that the property is not going to be empty for longer than 3 or 6 months then some insurers will offer a short term policy. A short term unoccupied property insurance policy can also be purchased online from some insurance companies. The property may be empty but as a property owner you still have duty and care to treat the premises as if there is no insurance cover in place.

A few basic rules in taking care to minimise the risks to your empty property include making sure all accessible windows and external doors are fitted with good locks, turning off the water supply and draining the system, installing an alarm system if budget allows it. Also visiting the property periodically to clear any post and to keep the lawn mowed. Give the property a look that says it not unoccupied. Install timer switches for the lights to turn on and off at random times.

Some insurers will also convert the empty property insurance policy to a landlords let property policy if you decide to rent the premises during the term of your policy. Or it could be converted to a standard home insurance policy if you move in yourself. Insuring a property that is vacant is essential and expert advice is crucial to ensure that the level of cover you obtain meets your exact needs.

Property insurance is meant to cover all three businesses related tangible and intangible assets like money and securities, accounts-receivable records, inventory, furniture, machinery and supplies. Insuring your company protects its continuity, making it possible to operate even after damages caused by natural calamities such as hurricanes, tornados, floods, earthquakes, or fire. While selecting a policy, consider the nature of the business, the risks involved, the geographical location, and select an appropriate package that provides maximum coverage at the lowest costs possible. It is better to go for a package policy rather than several individual ones, and if you take necessary precautions to avoid risks, you may have to pay a considerably lesser premium.

Need for property insurance:
It is better to have adequate property or causality insurance for small businesses, as it will offer protection against disasters like fire, floods, hurricanes, theft, vandalism and intentional damage caused by malicious forces. Standard property insurance provides coverage against losses from windstorms, explosions, hailstorms, aircrafts, automobiles riots vandalism, and fire. The insurance agency will pay for replacements, repairs, and the cost of removing property from the site to protect it from being damaged. Companies can opt for policies that cover damages from earthquakes, floods, building collapse and glass breakage. It is better to go for a content coverage policy too, to insure all your property within the business premise. An all risk policy will be sufficient for small companies but a named peril policy may be used when there is a greater risk from only one peril.

Things to consider :
While considering buying property or causality insurance for small companies, consider which suits your business better, deductibles calculated on a per claim basis or on an aggregate basis. The per claim basis suits companies, which rarely expect to make claims. However the aggregate basis suits those businesses, which expect to make claims often. Consider whether you want the insurance to be renewed yearly or if your needs keep changing consider making changes to the annual coverage of the policy. Get replacement cost insurance with an inflation guard too, as it will help replace property and get back in business as soon as possible. It is advisable to get a proper assessment of the value of your business before going for insurance coverage, as it will determine the amount of coverage necessary for your business. You may add other necessary insurance such as undamaged property protection, data protection, virus liability protection, and off premise property protection where applicable.