What homeowners need to know about abandoned buildings
Living near an abandoned building? They can have a significant impact on nearby properties, including local insurance rates and neighbourhood safety. Whether you see these buildings as risks or as restoration projects, vacant buildings can often raise important questions for potential homeowners in the area.
In this blog, we will look at the real risks that abandoned properties can pose, how they can affect your home insurance prices, and what action you can take to protect your home.
What are the risks of abandoned buildings in your area?
Risks of fire and vandalism
Studies have shown that abandoned buildings often contribute to higher local crime rates, attracting antisocial behaviour that can create safety concerns for nearby residents.
They can also impact property values and insurance prices. Premiums can rise based on the perceived risk of vandalism, arson, and trespassing. Apart from arson, abandoned buildings are common fire risks from neglect and natural decay, which poses a threat to surrounding buildings and homes.
The hidden costs
Vacant and abandoned buildings are sometimes signals of neighbourhood decay, which can diminish the overall appeal of a community and therefore lower property values. These changes may drive away potential buyers and decrease both the investments and quality of life of the existing residents. Insurance rates in high vacancy areas may be driven up because of the potential risks.
Protecting your home
Homeowners can help reduce the risks by taking part in local improvement initiatives that may be run by the council or charitable organisations, supporting Neighbourhood Watch programmes, and advocating for the maintenance or redevelopment of abandoned properties.
For the safety of you and your property, you may benefit from installing security measures like cameras and alarms and using motion-sensor outdoor lighting.
If you have any concerns, inform your insurance provider to ensure you are adequately covered. You might find that you’d benefit from policy add-ons that provide enhanced protection against risks associated with nearby abandoned structures.
If you notice any suspicious activity, you should promptly contact your local council and/or the police.
How revitalising abandoned buildings can improve your neighbourhood
Revitalising abandoned buildings can significantly enhance both the safety and general appeal of a neighbourhood. Repurposing neglected structures for either residential or commercial use not only boosts local investment but is also likely to increase foot traffic.
As property values rise and crime rates start to fall, home insurance premiums may decrease, as many insurers base these rates on neighbourhood conditions.
Insuring a vacant or abandoned property
If you are considering insuring a vacant or abandoned property, you need to be prepared for the unique challenges it will present compared to an occupied home. Many standard home insurance policies do not cover risks such as water damage, fire, vandalism, and the potential for squatters once a home has been vacant for a specified period (usually 30 or 60 days – be sure to check your policy for details on this).
Purchasing and renovating an abandoned property can be an exciting investment, but it requires extensive planning. Before diving straight into your restoration project, you should be aware of the specific types of insurance coverage that can protect their investment throughout each stage of development.
Renovation insurance can provide protection against risks unique to vacant properties which may not be covered under standard home insurance policies.
Once the project is completed, property owners with vacant buildings should consider obtaining specialist insurance coverage, such as our Unoccupied Home Insurance. At Homeprotect, unoccupied property policies provide FLEEA cover as standard, which protects against Fire, Lightning, Explosion, Earthquake, and Aircraft damage.
This limited cover ensures your property has essential protection while it remains unoccupied. If you require broader protection, such as cover for theft or vandalism, we can refer you to our underwriters to quote for more comprehensive coverage.
Liability concerns
As previously mentioned, trespassing is a common occurrence in properties that are known to be abandoned or otherwise unoccupied for long periods of time, so what happens if someone gets hurt on your abandoned property?
In the UK, the legal implications for property owners when someone is injured on their property, regardless of whether it is occupied, can be significant, as owners are deemed to have a duty of care to ensure their premises are safe. If a person is injured due to evidence of neglect or unsafe conditions on an abandoned property, the owner could face serious liability claims and possible lawsuits, particularly if the property is not considered adequately secured to prevent trespassers.