COVID-19 conditions for unoccupied properties
The following information will help you to prevent a breach of your insurance cover.
Government restrictions mean many businesses have closed temporarily which can result in buildings currently being left unoccupied.
If your insurance policy has unoccupied / security conditions and your property was unoccupied prior to the COVID-19 outbreak, then the usual security conditions required by your insurer are the same as before. These conditions may include among other things at least weekly visits, removal of combustible waste, switching off gas, water and electricity and letterboxes sealed.
You should refer to your policy wording for the exact requirements defined by your insurer.
For premises that have become unoccupied during the COVID-19 outbreak due to Government restrictions, a number of insurers are relaxing their policy requirements for the time being. During this period, insurers will continue to review their position.
Please contact us immediately if;
- the outbreak has left you unable to comply with the policy requirements, as your insurers need to be informed and any arrangement with your insurers to relax or vary the requirements needs to be agreed in writing;
- your property policy has multiple underwriters writing lines on it, as each of these might have different unoccupancy conditions;
- your policy wording is different to the guidance given in the table below, or you are in any doubt at all.
The table below includes a summary of the unoccupancy position where we have obtained responses from Insurers. If your Insurer is not listed in column A on this table, please contact your broker contact for more information. If your insurer is listed, please check your insurer’s occupancy position in column B and if your property is going to be left unoccupied for more than the total consecutive days then you MUST notify us.
|A: INSURER||B: OCCUPANCY POSITION||C: INSURER RESPONSE|
|Ageas||Unoccupancy clause does not currently apply if premises are unoccupied due to COVID19 - AGEAS will review again by 11/08/20.||Detailed response.|
|AIG||AIG have have indicated the following will apply to commercial business excluding SMEI. "If a building is now empty & this is a result of COVID19 then for the purposes of your property policy the building will not be classified as unoccupied. However, you will need to ensure you comply with any policy conditions in relation to security of the premises." Please contact your broker for more information.||-|
|Allianz (Including LV)||Unoccupancy conditions apply again for all policyholders from 30 June – refer to your broker if you are unable to comply. ||Detailed response.|
|Ansvar||Unoccupancy clause does not currently apply if premises are unoccupied due to COVID19. Ansvar will review 30/08/20. ||Detailed response.|
|Arch||Unoccupancy clause does not currently apply if premises are unoccupied due to COVID19. Arch will review 15/7/20.||Detailed response.|
|Aviva||90 days, extended by a further 45 days to 5th August, after that date all policies revert to normal terms and conditions relating to unoccupied premises. ||Detailed response.|
|AXA||Full cover extended to 15th July only for those businesses which remain compulsorily closed. Where closure is no longer mandated, the unoccupancy clause applies from 27th June 2020. ||Detailed response.|
|Beazley||Beazley have confirmed they have amended their unoccupancy clause to 120 days, in respect of COVID19. Please contact your broker for more information. ||-|
|Burns & Wilcox||For those premises still forcibly closed, the Unoccupancy Conditions continue to apply, subject to the conditions stated previously around inspections etc. If, when allowed to open again, an Insured chooses not to, perils are likely to be restricted to FLEA only, but this can be discussed case-by-case with us. ||Detailed response.|
|CFC||CFC have indicated they are likely to amend their unoccupancy clause to 120 days, in respect of COVID19. However we are awaiting confirmation from CFC. Please contact your broker for more information. ||-|
|Chubb||90 days but continuing thereafter only for businesses that must remain closed under Government restrictions – for all other circumstances, please refer to your broker with full details. ||Detailed response.|
|C N A||CNA Unoccupancy clause does not currently apply if premises are unoccupied due to Covid19. CNA will review 15th July 2020.||Detailed response.|
|Covea||Business premises which continue to be temporarily unoccupied due to Government restrictions on trading as a result of Covid-19. We do not need advising of this. Existing levels of cover will be extended until 31 July 2020 or until Covéa update this guidance (whichever is the sooner). We expect our policyholders will now be able to comply with normal policy conditions around the inspection of unoccupied Business premises. |
Business premises of policyholders who are permitted to return to trading by the Government but which remain unoccupied. Normal policy conditions around Unoccupancy apply.
|Ecclesiastical ||Unoccupancy clause does not currently apply if premises are unoccupied due to COVID19. Ecclesiastical will review 30/08/20. ||Detailed response.|
|Hiscox||90 days. Extending to 16th Sept 2020 for businesses not yet allowed to open.||Detailed response.|
|Markel||120 days.||Detailed response.|
|NIG||90 days, extended by a further 45 days to 5th August 2020. Further review at that point in time.||Detailed response.|
|NMU||Please refer to your existing policy wording.||-|
|QBE||As of 1/6/20 - If the Government says the buildings are able to be occupied then QBE’s temporarily unoccupied buildings cover specific to lockdown stops operating. If the building remains vacant after 7 days the unoccupied building conditions in the wording become operative. If the government continues to mandate that the location is closed then the COVID 19 specific approach to temporarily unoccupied buildings continues. ||Detailed response.|
|RSA||120 days.||Detailed response.|
|Travelers ||As a result of lockdown restrictions being eased, from the 15th July their 30 day unoccupancy condition applies. ||-|
|Victor||Please refer to your existing policy wording. ||-|
|Zurich||Unoccupancy clause does not currently apply if premises are unoccupied due to COVID19. ||Detailed response.|