Flint Bishop

Midlands based law firm advise on insurance warning for empty properties

Pictured above: Laura Eaves

 

Burglars checking up on death notices can bring further heartache after a loved one has passed away, a legal expert has warned.

According to Laura Eaves, a solicitor in the private client department at Stratford upon Avon-based Lodders, estates could be at risk from inadequate insurance cover on any unoccupied property after a death.

And that means a break-in might well be costly.

She cautioned: "This is of particular significance in the present economic climate with properties standing empty for longer than normal periods of time pending sale. 

"When a sole householder passes away and leaves their property empty, one of the first questions for executors is what they should do about securing the property and protecting the assets within it." 

The insurer, once notified, might well confirm that cover would be continued as per the standard policy terms. However, most home insurance policies have very similar restrictions in their cover which will automatically apply if the property is not lived in for a period of either 30 or 60 days, whether or not the insurer has been informed of the unoccupied status of the property.

Several risks are then excluded from cover - commonly loss or damage caused by theft or attempted theft; malicious damage; and loss or damage caused by escape of water from tanks, apparatus, pipes or from fixed heating installations.

"Therefore a promise of continued cover on standard policy terms is more or less useless as the most common risks when a property is left empty are not covered," noted MissEaves. "This has led in many cases to an estate being uninsured for many of the risks which the executors believe the insurance policy will still cover.

"A lack of understanding of the exclusions under these terms stretches beyond the policyholders and executors but also even to the advisers working for the insurance companies. It is vital that if continued cover is agreed by the insurer, the terms of the policy are checked carefully and clarification is sought as to whether the exclusions still apply or if the insurers are agreeing to extend the standard policy terms to provide full cover and override the existing policy wording, in which case a written endorsement must be obtained. 

"If the insurer has not been advised of the change in occupancy status it could invalidate cover immediately."

Miss Eaves recommends people should advise the insurer immediately and clarify the terms of the policy and any restrictions in cover; remove any valuables from the property within the first 30 or 60 days; arrange alternative specialist insurance cover if required; review physical security arrangements; arrange an inspection regime, at least once a week and record visits in a log; deal with any maintenance issues immediately when they arise; and review the settings on heating and water systems and switch off mains services. 

For more information on Lodders Solicitors LLP view their website here: www.lodders.co.uk

 

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Article published by Midlands Business News on 16 April, 2010

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