Underinsurance continues to be a problem among property owners. Properties that have not had a professional valuation within the last three years run the risk of being underinsured.
Empty commercial properties can be costly for property owners who face reduced rental income, increased maintenance and security costs. Insurance premiums for vacant properties may also rise in response to the additional risks presented by vacant properties.
As the weather changes, storms and increased rainfall can increase the risk of weather damage to commercial properties. After fire claims, escape of water is one of the most common types of claim, with insurers paying out £1.8 million every day.
In July 2021, extreme rainfall hit London twice, leading to widespread flooding across the city. In some parts of the city, a month’s rain fell in just one hour.
Increased hybrid working and rents have left many commercial properties unoccupied. London alone has 20 million square feet of empty office space – a 20 per cent rise since 2020 and the equivalent of almost 17 Houses of Parliament.
