How To Buy Vacant Property Insurance
How do you know if your property is really vacant? A property that’s empty, infrequently used, seasonally inhabited and/or periodically rented may or may not be “unoccupied”. Usage frequency is important to accurately gauge when you are looking at coverage options. Understanding vacancy – from the insurance company’s perspective – is key when you want to buy coverage for a property that may not always be 100% occupied.
In fact, according to IRMI (the International Risk Management Institute IRMI), “A vacant building contains little or no furniture or other personal property. Even if it is not vacant, a building is unoccupied when people are absent.”1
Related Matters: The Globe and Mail “Is your home or income property insured when it’s vacant?”
What starts out as a business property may change over time. If your company is moving operations between cities, one or more of your locations may be unoccupied for a short or extended period of time. Or if you buy a condo or cottage to put on the short term rental market, chances are it won’t be 100% occupied 365 days each year.
How Unoccupied Property Insurance Fills Gaps.
Unoccupied property can pose a serious risk to your bottom line. Statistically speaking, vacant properties are more susceptible to vandalism, undetected repairs, fire as well as other losses. Your existing commercial property insurance may specifically exclude coverage because of the vacancy.
This is why vacant property insurance fills a key gap as well as covers common risks for unoccupied property, such as:
- Explosion
- Fire
- Vandalism
- Lightning, windstorm or hail damage
- Malicious mischief on the property and general property destruction
- Presence of squatters on the property causing damage without owner’s knowledge
- Sprinkler leakage
- Vandalism
Use our form to get a FREE quote started now for your vacant property.
Why Time Is Of The Essence With Any Vacant Property.
Do you know about the 96-hour window? Under certain policies, vacant or unoccupied property insurance coverage can provide protection if your building goes unoccupied for as few as four days. It also protects against liabilities in the event someone is injured on your property and sues for damages.
Related Matters: City of Vancouver: 2019 Empty Homes Tax Information
If you are selling the property, filing for bankruptcy or if it is being renovated and/or not suitable for a use, the right property insurance can fill a critical gap.
4 Ways To Proactively Manage Vacant Property Risks.
You can also be proactive and protect your vacant, under construction and/or infrequently used property. In addition to vacant property coverage, you can:
- Hire a contractor to erect temporary fencing during the construction and/or renovation period
- Install alarm systems intruders, fires or floods will trigger
- Regularly inspect for damage and/or threats of damage. Hire third party security or property sitters to monitor and/or regularly physically visit and inspect the building and property.
- Seal off windows, doors and remove valuable inventory and/or goods
Insight: Due to increased risks associated with unoccupied and/or vacant property, a typical vacant property policy is one and a half to three times the cost of regular property insurance coverage.
While unfavourable incidents may occur, vacant or unoccupied property insurance coverage is important. It can protect your assets when worst case scenarios happen.
To learn more about vacant or unoccupied property insurance and other ALIGNED products and services that can protect your bottom line, contact an ALIGNED Insurance Advocate today.
Call us toll-free now at 1-866-287-0448
We Know ALIGNMENT Matters. Get More Than Vacant Property Covered With ALIGNED.
A few other liability coverages that you may want to consider for your business:
Want to learn more about where can I get insurance for my vacant property in Canada? Our experienced commercial insurance brokers are here to help you to determine the types of coverage you need most.
Read more about vacant property insurance and business coverage
- How much is insurance for an Airbnb rental property in Canada?
- What Insurance Do I Need For A Small Business In Canada?
- 18 Great Reasons Why Canadian Businesses Choose ALIGNED Insurance Brokers
Source(s): The Globe and Mail “Is your home or income property insured when it’s vacant?”; City of Vancouver: 2019 Empty Homes Tax Information 1IRMI
We’re here to help you find the BEST commercial insurance…
Our team of insurance brokers is available to help answer any and all questions you might have about all of our commercial insurance products. If you have a question about business insurance, are uncertain about what a particular coverage term means, or simply want to find commercial insurance that directly aligns with your needs, don’t hesitate to call us toll-free at 1-866-287-0448.
It’s time to get your insurance aligned. Want Canadian business insurance that’s ALIGNED with your bottom line? We can help. 365. Call us toll-free at 1-866-287-0448.
We’re ALIGNED across Canada. The ALIGNED Insurance National Operations Centre in Cambridge, Ontario supports our Toronto, Calgary and Vancouver offices. We’re proud our industry peers consistently recognize ALIGNED Insurance as one of the best insurance teams in the country. We are also very proud to be one of the fastest growing insurance brokerages in Canada.
We deliver e-news you can use. Get practical business insurance insights in your inbox. 12,000+ people subscribe to our free ALIGNMENT Matters e-news. Just click the JOIN OUR DISTRIBUTION LIST button – at the bottom of our homepage – to connect and learn more about us.
365 | Get ALIGNED. Every day, Canadian business leaders follow our insurance insights via @ALIGNEDonRisk, on Facebook, LinkedIn and watch our YouTube videos here!
