Vacant Property Risk Mitigation

2013

Tony Kelly

Managing Consultant

Manchester

tony.r.kelly@marsh.com

MARSH RISK CONSULTING 1 09 October 2013

Understanding The Risk – Vacant Properties

• Attract unwanted attention

• Can fall into disrepair

• Fire

• Flood

• Theft

• Vandalism

• Squatting

MARSH RISK CONSULTING 2 09 October 2013

Implications

• Insurers class as high risk, therefore high premium

• Effective risk mitigation can reduce this hike in premium

• Still have ‘duty of care’ to protect visitors on site, welcome or not

• Effective ‘mothballing’ will allow quick reinstatement

• Well maintained sites are easier to market

• Clients require reassurance

• Good risk management avoids negative publicity

• Values are maintained

MARSH RISK CONSULTING 3 09 October 2013

So - what do we do?

MARSH RISK CONSULTING 4 09 October 2013

Tell your insurer

• Becoming vacant is a significant

change

• This change is a ‘material fact’

• Vacant premises are viewed as ‘high

risk’

• Probability of loss increases

• Focussed risk management is

required

MARSH RISK CONSULTING 5 09 October 2013

Risk Mitigation

• Assess the specific risks

• Evaluate relevancy

• Implement mitigation plans

• Measure effectiveness

MARSH RISK CONSULTING 6 09 October 2013

Security

• Ensure the property is secure

• Lock all openings

• Seal all letterboxes

• Account for all keys

• External doors must have BS3621

mortice deadlocks

• Consider boarding up doors and windows

MARSH RISK CONSULTING 7 09 October 2013

Prevention & Protection

• Isolate all services where possible

• Drain plumbing

• Leave sprinklers, fire detection, CCTV & intruder alarms in service

• Protect systems remaining live from extreme weather

• Employ water ‘leak detection’ technology

MARSH RISK CONSULTING 8 09 October 2013

Eliminate

• Clear all combustible materials internally

and externally

• Remove all items considered attractive to

thieves

MARSH RISK CONSULTING 9 09 October 2013

Guarding

• Review your security arrangements

• Ensure an appropriate level of security is

maintained as agreed with your insurer

MARSH RISK CONSULTING 10 09 October 2013

Regular Inspection

• Inspect the property daily if possible, or at

least weekly

• Inspect all internal and external areas

• Inspect using a specific checklist

• Keep a detailed log of all visits

• Keep a log of all deficiencies

• Rectify all deficiencies promptly

MARSH RISK CONSULTING 11 09 October 2013

Summary

• Risk management / new acquisition surveys

• Risk ‘Health Checks’

• Business Resilience

• Corporate Defence (Risk Management)

• Project Review

• Sprinkler design and Request For Tender generation

• Valuation

• Training

…..and if so, please get in touch!

tony.r.kelly@marsh.com

Please think about whether you need assistance with: