Brett and Randall is warning owners of unoccupied properties to double check security and has issued the advice after a number of recent incidents in empty buildings.

There are more vacant properties than usual in the city due to the economic slowdown, and they are particularly at risk of damage during the colder months from homeless people seeking warmth and thieves and vandals operating under cover of darkness.

Chris Hutchins said people shouldn’t assume that insurance will cover them in an event such as a fire.

“Insurance companies are very wary of the risks of empty properties,” he said. “You need to manage the unoccupancy. Many people don’t realise what they are buying when they purchase insurance for an empty property. Insurers offering conventional buildings insurance are not likely to offer full cover. You almost certainly won’t be protected for damage by burst pipes or malicious damage, which are arguably the greatest risks for properties left empty.

“Insurers will impose warranties, such as boarding up, switching off utilities and requiring regular inspections, which may mean that they won’t pay out on a claim if it seems you haven’t complied. And the premium may be four times what you would pay for a fully occupied property. For the landlord, that means an increased insurance overhead at a time when there is no rent coming in.”

Mr Hutchins points out that the problem is worse for listed buildings, especially if they are derelict. “Warranties are even stricter than usual, and premiums are also higher for derelict buildings than they are for empty new ones because it is easier for people to break in, and there is a greater risk of damage.”

He says owners of new buildings should recognise they are especially at risk from burglars, who calculate that security won’t be as well organised as it will be when the property is fully functioning.

Brett and Randall reports growing interest from property managing agents in its specially designed Bricks and Mortar policy, which provides higher levels of cover and reduced premiums for properties under professional management.

“Many agents are having to commit considerable time and effort in inspecting empty properties they manage for clients,” says Mr Hutchins. “That’s an expensive business at a time when the property industry is depressed, so surveyors and commercial property agents are understandably interested in ways to ensure that their clients’ properties are fully insured on the most cost effective basis.”