COVID-19 Conditions For Unoccupied Properties

Posted 09/04/20

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 11/10/20.

Detailed response.

AIG

The period of unoccupancy specified in the policy document 30 days will be extended to 60 days OR until the end of the period of the UK Government lockdown effected 23rd March 2020; if earlier.

-

Allianz (Including LV)

90 days for business incepted before 20 March 2020.

Detailed response.

Ansvar

Unoccupancy clause does not currently apply if premises are unoccupied due to COVID19. Ansvar will review 30/06/20.

Detailed response.

Arch

Unoccupancy clause does not currently apply if premises are unoccupied due to COVID19. Arch will review 1/7/20.

Detailed response.

Aro

ARO have agreed to extend the unoccupied period by a further 30 days taking it to 120 days in total, where cover will not be reduced. This is applicable only to hair and beauty, pubs, restaurants and cafes as government guidance has allowed the reopening of retail shops subject to social distancing measures. Any trades that require the additional 30 days that do not fall into the categories stated will need to be refereed to ARO for further consideration and restricted cover may apply.

 

Aviva

90 days.

Detailed response.

AXA

Full cover up to 15 June 2020 then AXA will treat each case individually based on its risk features.

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

Burns & Wilcox have advised they will review each case individually. Please contact your broker for more information.

-

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.

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

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.

Ecclesiastical

Unoccupancy clause does not currently apply if premises are unoccupied due to COVID19. Ecclesiastical will review 30/06/20.

Detailed response.

Hiscox

90 days.

Detailed response.

Markel

120 days.

-

NIG

90 days.

Detailed response.

NMU

Please refer to your existing policy wording.

-

QBE

Unoccupancy clause does not currently apply if premises are unoccupied due to COVID19.

Detailed response.

Regency Underwriting Services

Existing customers can continue without an MTA being made subject to the existing unoccupancy terms within the policy wording, only where the business is temporarily closed based on current government guidelines. It should be noted that cover is restricted as per the policy wording after 30 days.

 

 

 RSA

 90 days.

Detailed response.

Travelers

Travelers indicated the following will apply. "Unoccupancy clause will not currently apply if premises are unoccupied due to COVID19" Travelers will review 15/6/20. Please contact your broker for more information.

-

Victor

Please refer to your existing policy wording.

-

Zurich

Unoccupancy clause does not currently apply if premises are unoccupied due to COVID19.

Detailed response.

 

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