Recession-hit property sector must protect empty buildings
Norwich Union has warned that the rash of empty commercial property could beat risk of arson, theft and vandalism if it is left unprotected.
It said the Fire Protection Association (FPA) estimates that fires, theft and malicious damage in empty premises causes losses in excess of £100m each year.
Allister Smith, NU’s property risk manager, said: "As businesses face challenging times surviving the economic climate, with production down and workplaces closing, there are rising numbers of commercial properties left empty.
"Evidence shows that the prospect of damage or injury arising from empty buildings can be high, even if only temporarily vacant, e.g. prior to sale or refurbishment. To reduce these risks it is absolutely critical that they are properly secured and managed throughout this period.
"We are concerned that property owners are putting their portfolios at risk if failing to notify their insurers and take necessary precautions when their buildings are left unoccupied. Although empty, these buildings contain a lot of value in fixtures and fittings and we are seeing an increasing trend in the theft of building fixtures, such as plumbing, electrical cabling and even floorboards."
The Insurers' Research Insight, Strategy and Control Authority (RISC Authority) has a Code of Practice for the Protection of Empty Buildings.
Smith adds: "The document helps property owners identify the risks of an empty property, manage the shutdown, including conducting a risk assessment in compliance with the Regulatory Reform (Fire Safety) Order 2005, and reduce any risks.
"Any vulnerable points of access should be boarded up and security patrols put in place if necessary, and then monitored. Rubbish from inside the building and around the perimeter should also be cleared. A general rule is to ensure that the building doesn't look neglected, as one broken window will invariably lead to more.
"Services to the building should be isolated as far as possible, particularly water and electrical supplies. Where there are existing sprinkler installations, these should be retained as they continue to provide a valuable protection against fire damage.
"In addition, using third party specialists is also recommended to ensure the property is properly secured, cleaned and cleared efficiently for the time it will lay empty."
