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Inclement weather and rapid changes in temperature particularly raise the risk of burst pipes and significant water damage to empty properties.
Other potential problems associated with empty probate properties extend to criminal damage, electrical faults, squatters and disrepair; but water damage can be substantial and costly – and sometimes avoidable.
Unoccupied property insurance
Probate practitioners are reminded of Practice Enterprise’s own unoccupied property insurance product - Watchman – designed specifically to cover the risk of unoccupied residential properties.
Brian Dunk, from Straight Solutions – who arrange Watchman – warns that escape of water damage to properties is far more prevalent than people realise. “Escape of water incidents is the biggest single insurance cost we have. It is the biggest by number of claims and by cost,” he says – “as a result a number of insurers already routinely exclude escape of water cover from cover on empty probate and estate properties”.
While they do deal with serious fire damage claims and malicious damage from time to time – Brian says last winter Watchman’ insurers dealt with at least 40 escape of water claims, even in particularly mild winter. One of those claims lead to a £300,000 payout following a burst pipe discovered within 2 days that didn’t even gut the whole house. Several further claims cost in excess of £50,000.
Brian points out that an escape of water in an empty property can go on for days without being discovered and quickly lead to significant property damage. This is why pre-emptive measures and regular property inspections are crucial.
Straight Solutions is, says Brian, “unique” in giving clients a choice of precautions they can take to protect unoccupied property from water damage, particularly from the escape of water. Acting on the options offered is rewarded with discounts.
If, for example, the house it to be sold (as most empty probate properties are), the owners/sellers like to keep it warm for inspections. However, Brian warns that even if they keep the heating on low – a burst pipe can still happen.
Clients have the option of turning the water off at the mains – which means the house can still be heated, but it will minimise the loss of water in the event of a burst pipe; or turn off the mains and drain the system. The latter is a better option if the property is unoccupied long term.
Inspections
There is also the importance of regular inspections of empty probate properties. The majority of unoccupied insurance policies include inspection clauses requiring a property inspection at various intervals.
While some policies require inspections as often as every 3 days (hardly practical for many people); the Watchman policy requires an inspection every 30 days, which is far more manageable for solicitors and their clients.
In the event of a claim following an escape of water, the loss adjuster will attend the property to determine the extent of damage and what pre-emptive steps were implemented. If, for example, the client failed to fulfil what they said they would do – their claim is likely to be rejected.
Similarly, failure to show records of regular inspections could invalidate the policy. One such claim, valued at around £200,000, was turned down because of failures to check and inspect the property.
Practitioners can also advise clients that if they discover an escape of water at the property, they can promptly turn off the water tap – and also flush the toilet/s which will help to empty the water tanks more quickly.
Easy to arrange
Cover is easy for executors to arrange and highly cost-effective. There is no requirement for a full annual premium to be paid upfront with the Watchman policy – only a small initial deposit is required for cover to be in place.
Cover is calculated at a fixed daily rate; and the full insurance premium is then paid on completion of the sale or (if earlier) within 12 months. Also, there are no hidden charges or cancellation fees.
With insurance in place, the executors and trustees continue to have a duty to check for and identify any potential risks that may arise. As well as regular practical checks of the property, disconnecting water and gas, removing valuables from external view, taking away any build up of post and/or sealing letter boxes and cat flaps are important practical steps.
For more information and a quote, contact us here Watchman cover can be arranged on the same day by telephone from a friendly and knowledgeable team.
