Whether residential or commercial, there are many risks associated with owning vacant property. In order to protect your property, it’s crucial to first familiarize yourself with the various exposures it faces. Then, in addition to securing insurance, there are several precautions you can take to reduce these risks.
Understand the Risks
Among the many risks associated with vacant properties, one is that they are an obvious target for trespassing, theft and vandalism. For instance, with the cost of copper on the rise, there has been an increase in the theft of copper pipes from vacant properties. In addition to property damage or other types of losses that may occur, it’s also important to realize that the owner of the property can be held responsible for criminal activities or accidents that transpire on the premises.
Considering that the property is vacant, damages that go undetected, such as fire, water damage, mold, electrical explosions, and wind or hail damage, represent another concern. According to a U.S. Fire Administration study, approximately 28,000 fires occur in vacant buildings every year, causing $900 million worth of property damage. Unfortunately, maintenance issues that would have been detected if the building were occupied are responsible for many of these accidents.
Reduce Your Risks
In addition to securing insurance coverage that will fully protect your vacant building, you can take the following simple precautions to help reduce your risks:
Limit your liability – ensure that your property is free from hazards such as broken railings, steps, or windows, that could cause injuries to anyone on the premises.- Deter vandals – first, make local authorities aware that the property is vacant so they can monitor it for criminal activity. Then, try to maintain an “occupied” appearance on your property at all times – mow the lawn regularly, forward your mail or have someone pick it up often, and install a security system and/or lights with timers.
- Keep your property well-maintained – keeping up with maintenance on your property can help prevent damage. Inspect the heating system, chimney, roof, attic, insulation, gutters, and basement regularly for any necessary repairs. In addition, be sure to have the plumbing system winterized to prevent pipes from freezing and bursting. Another option worth considering is to install smoke detectors that are tied to a centrally monitored fire alarm system. This way, in the event that a fire occurs when no one is in the building, the fire department will be notified.
Protecting Residential Properties with Vacant Home Insurance
When it comes to vacant residential properties, many insurance companies include a clause stating that an insured’s homeowners insurance coverage will expire if the home is left vacant for more than 30 or 60 days, depending on your company and specific policy, leaving the homeowner responsible for all of the aforementioned risks. However, many companies also offer vacant home insurance that will protect your vacant property.
Insuring Vacant Commercial Buildings
In many cases, vacant commercial buildings can be more difficult to insure since they are exposed to greater risks, including an increased risk of theft, malicious damage, and burst pipes. When attempting to secure vacant commercial building insurance, it’s crucial to disclose all relevant facts to your insurance agent, including the reason the property is vacant. You should also provide a schedule of any planned work to be done on the property.
Given the increased risks associated with vacant properties, they can be much costlier to insure than an occupied building. However, it’s important to not only look at the price, but also at the comprehensiveness of the coverage. To learn more about vacant property insurance and to get a free quote, call us today at 603-882-2766 or submit our online quote form.