Last summer’s civil unrest saw properties housing asylum seekers targeted and set alight in Tamworth, with similar incidents reported in Ireland and beyond. Research suggests that as many as one in four UK businesses were affected by civil unrest in 2024, underscoring the rising risks linked to accommodating asylum seekers.
As the demand for safe, well-managed accommodation grows, insurers have a crucial role to play.
The political debate around asylum and immigration remains heated and unpredictable, making it challenging for insurers to offer coverage without facing excessive risk.
Many insurers are reluctant to insure properties used for asylum seeker accommodations due to the volatile nature of protests and riots, which can flare up suddenly and spread quickly, complicating risk assessment and driving premiums higher. This leaves property owners in a vulnerable position when trying to secure adequate cover.
What can be done to reduce these risks? Property owners and developers should prioritise open dialogue with local communities from the very start. Engaging residents and stakeholders early helps prevent the risk of an ‘information vacuum’ that often fuels misinformation and tension.
Another key strategy is the careful selection of properties. Instead of relying on hotels or apartments, developers are increasingly converting vacant buildings into accommodation. These spaces can be repurposed quickly with modular construction methods, avoiding pressure on local amenities while minimising risks linked to fire hazards or flooding – issues that complicate the underwriting process.
Security is a crucial concern that can’t be overlooked. The construction and build-out phase is particularly vulnerable, as during development, sites are easier targets for malicious acts aimed at causing disruption to operations. Having adequate space for security measures such as barriers and fencing is critical, which is why properties like vacant schools often offer better protection.
Equally important is developing a clear incident response plan, so everyone involved knows how to react in cases of civil unrest, how to keep residents safe and when to involve authorities. Looking ahead, it’s clear that the insurance sector, property owners and communities must work together to create safer environments for asylum seekers.
With political tensions unlikely to ease any time soon, innovative solutions and responsible risk management has never been more important. While insurers plan a more central role, property developers and owners also have a part to play in mitigating risks to ensure vulnerable people receive the shelter and support they need.
Read the full article published in Insurance Post, a leading source for in-depth insight and analysis on all aspects of the insurance industry, here:
https://www.postonline.co.uk/commercial/7957907/the-challenge-of-insuring-asylum-seeker-accommodation?ref=search