How Can You Considerably Reduce Your Vacant Property Insurance Premiums?
Vacant property insurance can be expensive. Property insurance premiums alone can be considerable, but when you’re adding vacancy into the mix the likelihood is that the premiums will skyrocket. This means that owning a property can be an expensive prospect, even if you’re not actually resident in it.
Reducing your insurance quotes is possible though, if you use the service of property guardians.
Why is vacant property insurance so high?
All insurance companies use risk to determine the quotes they establish for their various policies. The higher the risk of there being a claim on the policy, the higher the premiums are going to be. Vacant property insurance is therefore higher because it’s perceived that the chances of something happening to an empty building are higher than one that’s occupied.
There’s two main things to consider with that. The first is the propensity for internal damage, namely through malfunction of the amenities or general structural degradation, or even storm and weather damage. With someone living in a building they tend to notice little things are wrong, and seek to have them rectified as soon as possible. With the property empty, there’s nobody there to notice those things so they end up progressing to the point where serious damage is possible. The same is true for rodents and pest infestations, which if left unchecked and untreated can end up causing considerable issues.
Then there’s the external elements to consider as well. Even if a property is in great condition, so the chances of a burst pipe or malfunctioning electrics are low, an empty property is a potential magnet for both burglars and squatters. The two issues often go hand in hand. If criminals know a property is owned, but empty, they will stop at nothing to gain access to search for anything that might have been left behind.
As they will likely force their way in, that means a lock or a window will be broken in the process. So even if they don’t find anything and leave, it means its now insecure. Vandalism and squatting will then become your biggest issues, as there’s literally nothing to stop people just walking into your property whenever they like.
These are the reasons why vacant properties are generally considered to be higher risks to insure, and as such the premiums to do so can be surprisingly expensive. Few people realise just how much risk a vacant property carries.
What can you do about it?
That’s all well and good, but what do you actually do about it? One of the best ways to reduce your vacant property insurance premiums is to use the services of a live in guardian. Insurance companies now generally accept that an occupied building is much less risk than a vacant one, so using a property guarding service is a great way to get lower premiums.
What is a property guardian?
A property guardian is, as the name implies, someone who occupies your building while you’re away. They will live in the property as normal, ensuring that any and all associated problems are reported and that potential burglars and squatters are deterred.
Of course it’s not a case of just opening the front door and letting in anyone who wants to live in your building. That’s why you use the services of a professional outfit like VPS Guardians. The process begins by giving your building a thorough survey so we’re completely familiar with the layout, structure, and any issues that we need to be aware of.
Your property is then “marketed” to our tight-knit group of property guardians, based on the terms you intend to leave the building vacant for. When one applies to occupy your property they will be vetted again for suitability. When the guardian is approved, they will then begin to live in your property – at a considerably lower level of rent than most private tenants pay.
We are involved throughout the process for both the owners and the guardians. It’s not a case of just letting someone live in your property and leaving them to it. Any issues found in the property are reported directly to us so we can liaise with you about the best course of action to resolve them. Aside from that we also carry out regular spot checks to ensure the guardian is treating your property with respect, and that no damage or alterations have occurred.
Reducing premiums, increasing peace of mind
At VPS Guardians we have stringent criteria regarding who we accept into our property guardianship program. That means you can rest assured that we won’t even let someone apply to protect your vacant property without knowing everything we need to know about them and having complete trust in their ability to treat your building with the respect it deserves. You also save on potentially expensive costs from having to have electrics, plumbing, and gas systems checked and maintained after being off while you were away – you can just start living again like you never left.