Unoccupied commercial property can often be a shrewd investment opportunity to either refurbish for sale or let, or in most cases to convert into residential.
We can accommodate both of these scenarios; so once you obtain the relevant planning permissions, you’ll need to speak to us (hopefully) about insuring the property.
Arranging the insurance on unoccupied properties isn’t as straight forward as you may be accustomed to (if this is your first venture in this field) when arranging insurance for occupied property, in most if not all cases cover is initially diluted to four perils (Fire Lightening Explosion Aircraft) and can be increase to extensive perils should you wish – HOWEVER, if the property is undergoing structural alterations, insurers will restrict cover to FLEA (see above) only and put an endorsement on the policy that the contractor have the relevant insurance in place and pick up the rest of the risk. So be sure that your contractor has a contractors’ all risk policy in place, before starting the works.
Given the dilution in cover for unoccupied properties, you may think that prices will be relatively cheap; unfortunately for you, this isn’t the case! Though cover is restricted, it is absolutely plausible that any of the insured risks could arise, especially fire – and with no inhabitant to alert the authorities or contain, any loss is potentially the whole property.
Back to insuring the property, we’ve mentioned the cover available, and if you’re ploughing hundreds of thousands, if not millions into the property you’re going to want to protect your investment against any & all potential losses.
So if you’re looking to purchase a commercial premises to renovate or alter, but need to get your figures in order before completing the purchase, you may only want at this stage, to get some indication prices for the insurance, so want we will initially need to give you those indication figures are as follows:
- Full Address & post code
- Year of Build
- Rebuild Value of property
- How long property has been unoccupied for
- Brief details of works
- Cost of works
- Duration of works
- Intentions for property
The above will able us to ascertain rough prices for you for your calculations, and should you require formal terms, we will advise additional information required.
