Empty commercial properties carry increased risk and require specific coverage to ensure your investment is protected.
What is Vacant Commercial Property Insurance?
Commercial Vacant Property Insurance is a policy that protects the structure and fixtures and fittings of commercial property which will be empty for more than 30 days. Most insurance company deem a commercial property as vacant once 70% of the building becomes unoccupied.
Why do you need Insurance if your Commercial Property is vacant?
Vacant properties are at a greater risk of causing financial liabilities to their owners than occupied properties. Empty properties are more susceptible to weather damage, for eaxmple, cold weather can cause pipes to burst. This is more likely if the building is not being heated, if the property is not monitored then this type of flooding could go undetected for a long period of time and end up causing the whole property to be lost. Squatters are a big risk to property owners as well, not only do they face the costs involved with trying to get them removed but they would also be liable for any damage the squatters have caused. Another big risk to owners of vacant commercial property is theft, owners may think if all of the property is removed then there is nothing to steal. However, that is not the case, large commercial buildings have literally tens of thousands worth of copper piping thieves want to strip from the walls, if a burglary occurs not only do the pipes need to be replaced but also the damage caused to the walls, floors and ceilings will need to be reparied. Vacant property Insurance will protect owners from risks like these.