Vacant Church to Be Turned Into Apartment Buildings – What Sort of Insurance Is Needed?

Circa 2003, on BBC News, a superintendent minister was quoted as saying that the Victorian-listed Ebenezer church building (pictured here), saved after an eight year campaign to open it to the public, “had more potential and better access” than another place of worship which was set to close down. 

That other place of worship—the old Salem Methodist site in Vauvert—was to be scrubbed to make way for apartments, and its congregants moved to Ebenezer, which would serve as a place for worship for the first time in a decade. 

That was a little over eight years ago.  Now, it has been determined, it’s the venerable Ebenezer church’s turn to experience an official reincarnation of sorts.  This St. Peter Port church, located in Brock Road, will–after 20 years of standing derelict and unoccupied–be developed into housing.

According to the BBC: “The church is owned by the Guernsey Methodist Circuit and now [that] permission has been granted, it will look to sell the site to prospective developers.”

What’s a would-be owner to do in terms of insurance? When dealing with flats or blocks of flats that are in mid-development, insurance might be a tad hard to come by. Or will it?

Builder’s insurance is a form of site insurance that often works well for developers. According to Self-builder,  there are a few standard construction risks that go along with investing time and money in property development. 

Here’s a list of what could possibly go wrong…incidents which a comprehensive policy would cover:

  • Works which fall under the category of either permanent or temporary might collapse;
  • Temporary edifices, fixtures and fittings might fall apart;
  • The construction plant, tools and equipment might become a liability.

Too,

  • An employer’s liability;
  • Any public liability;
  • Any personal accidents that ensue; and
  • Whatever legal expenses are incurred

might need to be covered.

Additionally, a few extensions might be a good idea.  The cover to be considered might also include:

1.  A clause for damage or liability to surrounding buildings;

2. The loss of rental income–there are sure to be periods of flux during which many flats are left vacant; and

3.  The loss of mortgage interest.  This means that if there is an (insured) loss or damage, and you incur interest on your mortgage because the expected sale of a development has stalled, you’d be covered.

Let’s say, instead, that you’re the proud owner of a block of flats of this formerly sacred ground after the fact.  Now what?

If you end up purchasing such a site once it’s been developed, independent property consultants might urge you to opt for what they refer to as “specialist” insurance, or unoccupied property insurance. 

Since the Fire Protection Association (FPA) estimates losses due to fires, theft and vandal-style damage in the area of £100m each year, it makes sense to go for those covers, as well as for protection against storms, and leaks or floods. (These hazards seem to be excluded from most insurance policies, you’ll find.)

And, if the new block of flats have already welcomed a tenant or two when you take the property  over, you might also wish to look into  actual property contents cover

Googling “unoccupied property insurance – UK”will point you to other appropriate unoccupied property insurance sites. unoccupied church image

In many respects, the old Ebenezer church will still have a great deal of potential and access as profits are turned and new homes are created.  And what better place to build new living quarters than a place formerly imbued with spirituality and goodwill—now buzzing with the energy of conversions and renovations—and suitable insurance cover. 

Graphic:  Ebenezer Church courtesy of BBC News. Guernsey.

-David Slade

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