Commercial property insurance

For most businesses, property rates constitute the third largest outgoing, after staff costs and rent. However, for empty property, they may be the largest outgoing, without any income to pay them. They therefore present a particular challenge to property owners and managers.

It is important to be aware of the differences between occupied and unoccupied rates and how the liability of empty property rates arises. The rating of empty property is achieved by levying a separate, alternative rate from the occupied rate. There are very few exemptions from empty property rates, but there are some reliefs available.

The issue of empty property rates is yet to be fully resolved in legal terms and is becoming increasingly complex. However, while the substantial burden of rates remains at 100% for all empty premises, attempts at mitigation will inevitably continue. This section is primarily focused on legislation and cases in England and Wales but also provides an overview of the systems for Scotland and Northern Ireland.

This section is maintained by Alexandra Anderson of Reynolds Porter Chamberlain LLP.

Document template: Property insurance claim form

Feature: Unoccupied commercial property: insurance

RICS journal article: Ensuring correct cover for fire