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Vacant Property Insurance - July 2017
Owning a vacant building can pose serious liabilities because
vacant buildings are more susceptible to vandalism, undetected repairs, fire
and other losses. If you own vacant property, it is advisable to purchase
Vacant Property Insurance, also known as Vacant Building Insurance or Vacant
Dwelling Insurance, to protect against risks.
The following are the most prevalent risks to vacant
- Lightning damage
- Windstorm or hail damage
- Riot or civil commotion
- Sprinkler leakage
- Sinkhole collapse
- Vandalism (no one is
present to deter vandals)
- Malicious mischief on the
property and general property destruction
- Presence of squatters on
the property causing damage without owner knowledge
Under certain policies, Vacant Property Insurance can
provide protection if your building goes unoccupied for as little as four days.
It also protects against liabilities in the event someone is injured on your
property and sues for damages. In some cases, it is required when a property
owner dies and the property goes to an estate sale. It may also be a viable
option if the property is in the process of being sold or if it is under
construction and is uninhabitable.
In addition to purchasing coverage for a vacant building,
take the following actions:
- Regularly inspect it for
damage or threats of damage
- Seal off windows and
- Install alarm systems that
are triggered by intruders, fires or floods
A typical Vacant Property Insurance policy is one and a half
to three times the cost of a Property Insurance policy due to the increased
risks associated with owning an uninhabited building.
If your occupied property becomes vacant, it is imperative
that you notify CMR Risk & Insurance Services, Inc. immediately. If you
fail to give us adequate notice (in some cases, the required notice is 60 days
after it becomes vacant) and you suffer a loss, coverage may be denied.
We understand that unfavorable incidents can occur, but
Vacant Property Insurance can provide necessary protection. Contact us today
for more details.