Soaring scrap metal prices are making empty commercial buildings prime targets for thieves, according to experts at national property consultancy Lambert Smith Hampton (LSH)
And many property owners are facing big bills because they have failed to read the small print on their insurance policies, which usually demand regular inspections of empty property.
Director in LSH’s Birmingham-based Building Consultancy, Alexa Cotterell said that when buildings are left empty they quickly become a beacon for metal thieves, not to mention vandals and squatters. Repairs following criminal damage can take many months, delaying the point when the building can start earning rent.
Alexa Cotterell said, “With vacant space at a record high, effective and thorough property management has never been more crucial. Landlords need to employ a rigorous strategy to ensure their properties remain as income-generating assets, without bearing the brunt of expensive remedial costs. For example, a 60,000 sq ft industrial unit was recently broken into and stripped of all its copper piping and cabling. In the process of getting to the copper, the thieves smashed toilets, brought down ceilings and tore apart electrical distribution boards. Having failed to carry out regular inspections the owner’s insurance policy was invalid and he was left with a bill close to a quarter of a million pounds.”
She said most insurance policies require owners of empty properties to carry out regular inspections, normally on a fortnightly basis.
She added, “Lack of inspections can also result in the insurance provider imposing restrictions on the policy, for instance the excesses – possibly as much as £50,000 – added to policies. Inspection is the only way to know if a building is secure.
“Some property owners choose to carry out a cursory external inspection without conducting an internal viewing. Although less costly this is likely to be counterproductive. Unauthorised entry can still be gained without any obvious external signs, and if damage goes un-noticed over a period of time, the cost of putting it right will escalate,”
Alexa Cotterell said, “The message to owners and landlords across all sectors is clear; check the small print on the insurance policy relating to empty buildings and inspect vacant property regularly and thoroughly. The costs of not doing so could be very expensive indeed.”