Vacant Building Insurance Coverage Explained

Vacant Building Insurance Coverage Explained

Securing insurance for a short or long-term vacant property can be difficult, expensive, and complex. Thankfully, ALIGNED Advocates have experience and expertise in handling these types of placements and can present a number of options for consideration.

Vacant Commercial Property Insurance Coverage Target Classes

  • Newly vacant
  • Residential
  • Commercial/Industrial
  • Undergoing minor renovations
  • Vacant with the planned demolition
  • Foreign Owned

Vacant Building Insurance Liability Coverage Highlights

For best-in-class vacant properties, ALIGNED can typically secure quotes that can include some or all of the following coverage extensions:

  • Broad form coverage
  • Replacement cost
  • Sewer backup coverage
  • Vandalism
  • No restrictions on the age of the building
  • On-premises pollution (property only)

Is It More Expensive To Insure A Vacant Building? 

Insurance for a building that is vacant for an extended period is generally more expensive to insure than one that is occupied. This is due to the fact that vacancy means there is no one on-site to monitor any potential mishaps or occurrences. For example, in colder months, pipes can burst and cause extensive water damage. If no one monitors the building, the water damage can become extensive quickly. Due to this added risk and potential for more serious damage, vacant building insurance is usually more costly than for other commercial buildings.

What Is Vacant Commercial Building Insurance? 

Vacant property insurance will protect your physical structure from potential hazards. These could include fire, vandalism or theft, extreme weather-related harms, and accidental damage. Additionally, vacant building insurance can protect the property owner from liability for property damage or physical injury to third parties.

Your ALIGNED vacant building insurance policy can include coverage extensions for specific issues that apply to your commercial building. 

Can You Get Insurance for an Unoccupied Commercial Property?

The crucial difference between a vacant and unoccupied building is the length of time. A building is considered vacant when it has been empty for more than 30 days and has been emptied of furniture. Typically, a vacant building would have electricity, water, and other services shut off.

A building is considered unoccupied when it’s only temporarily unoccupied but is still set up for use and will be used again in the near future. You can insure an unoccupied building, but many insurers will only do so for 30 days or so (this may differ between insurance providers). You can usually expect to pay about 50% more to insure an unoccupied home.

How Much Is Insurance On A Commercial Building? 

Insurance on a commercial building depends on a few factors, including the size of the property, its value, the age and condition of the property, whether it has had previous insurance claims, and its current use. If the commercial building is vacant, the insurance is likely to be more expensive than the one that is currently being used. As described above, that is because there is greater risk involved in a building that is vacant. If damage occurs, it can be compounded if it isn’t discovered immediately, and more types of damage can happen. Contact an ALIGNED insurance advocate today for a quote tailored to your commercial building.

ALIGNED can accommodate a variety of unique commercial property exposures and hazards and works with insurers who have capacity available in excess of $20 million. Whether it is a vacant dwelling or a vacant commercial or industrial space, our products are custom-tailored to a variety of risks!

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For more information on Vacant Building Insurance Coverage, speak to an ALIGNED Insurance Advocate today.

ALIGNED Across Canada   

100% Canadian-owned, ALIGNED is a premiere insurance brokerage serving thousands of clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours. Our team will help you find proper insurance coverage from a trusted insurance company for your vacant property.

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