If you own or plan to own commercial properties, it can come with some real financial perks; but keep in mind there are potential problems you need to know about. As a property owner, there will be times when your building/property becomes vacant for one reason or another, but should it concern you? The answer is yes! Read on to find why having vacant property can create some insurance concerns that can negatively impact your financial standing.
Imagine having a building that nobody has been in for a few months when you get the phone call that the property was damaged by fire due to electrical issues of which you were not aware. Since nobody was in the building on a regular basis, what perhaps started out as a simple electrical issue turned into a major problem.
Vacant property is also more likely to experience theft and vandalism since nobody is routinely there to monitor loss potential.
How Vacant Property May Impact You and Your Commercial Insurance
Higher Insurance Premium- If you have properties that are sometimes vacant, it is important to let your Alabama independent insurance agent know; however, you may experience a higher premium rate or higher deductible.
Limitations/Exclusions for Coverage- Keep in mind that many commercial policies come with provisions, exclusions, and limitations when it comes to “vacancy.” Many variables, such as the number of days the property has been vacant, to the type of loss the property endures, are all important components pertaining to coverage. So, it is recommended you discuss the vacancy provisions with your local Alabama independent insurance agent.
Tighter Security- If you have property that is vacated, it is essential to tighten the security on the premises to include security cameras, motion lighting and even hiring a routine person(s) to regularly inspect the property. Having security in place can minimize the risk of losses such as theft and vandalism.
Utilities- Let’s assume you own a building that has been vacant for several months in the winter. If you shut off the heat, it could lead to pipes freezing which could create a significant water loss. If you know a property will be vacant for a long time, it is recommended you shut the water off and drain the pipes.
The longer a building/property is vacant, the more likely it is to suffer a loss. If you have any questions or concerns with a vacant property, contact our offices at Burkett & Associates and we will be happy to assist you. We are here for all your Alabama commercial insurance needs. Don’t wait! Call today at 256-704-7400.