What is Unoccupied Commercial Property Insurance?

What is Unoccupied Commercial Property Insurance?

30 Nov    Business, Finance News

Unoccupied commercial property insurance is essential in the dynamic landscape of our real estate market. Commercial properties often find themselves in periods of vacancy.

Whether due to renovations, market fluctuations, or unforeseen circumstances, unoccupied commercial properties pose unique challenges for property owners. One crucial aspect of managing the challenge of a vacant property is through securing appropriate insurance coverage.

With CIA Landlords you have access to the best quotes on unoccupied commercial property landlord insurance. 

What are the risks of an unoccupied property?

Unoccupied commercial properties face a range of risks that differ from those of their occupied counterparts. From vandalism and theft to potential damage from weather elements, an empty building is vulnerable to various perils. Traditional commercial property insurance policies may not adequately cover these specific risks associated with unoccupied spaces, making it crucial for property owners to explore a more specialised insurance option.

Recognising the distinctive risks involved, CIA Landlords can find you specialised policies designed specifically for unoccupied commercial properties. These policies typically cover a range of potential threats, including:

1. Vandalism and Theft

Unoccupied buildings are often attractive targets for vandals and thieves. Insurance policies for unoccupied commercial properties typically provide coverage for damages resulting from malicious acts, such as graffiti, broken windows, or stolen property. In order to prevent this, CIA Landlords can help you find the best coverage for properties that are vacant for up to 12 months.

2. Liability Protection:

Even when unoccupied, commercial properties may still pose liability risks. If a trespasser is injured on the premises, liability coverage can protect property owners from potential legal claims.

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Other things that are covered with unoccupied commercial property insurance include:

  • Malicious damage caused by tenants up to a maximum of £5,000
  • Theft by tenants up to a maximum of £5,000
  • Loss of rent
  • Legal protection
  • Full accidental damage

This list is not exhaustive, so make sure to visit the CIA Landlords’ website to find out more about what can be covered under this unoccupied property landlord insurance policy.

Mitigating Costs and Financial Impact

While unoccupied commercial property insurance comes at an additional cost, the potential financial impact of leaving a property uninsured during vacancy can far outweigh the premiums. Without adequate coverage, property owners may find themselves responsible for significant repair and replacement costs. Let’s find out how to secure the best coverage for you as a landlord.

Tips for Securing Affordable Coverage

Risk Management:

The first, and probably most important thing to do to ensure that your vacant property is secure, is to put certain measures in place. The fact that the property is vacant is already a big risk in itself, so it is wise to make sure that security measures, such as surveillance systems, alarms, and regular property inspections are installed or implemented. As a result of this, you can potentially have lower insurance premiums.

Communication with Insurers:

Communication is always key! Keep open lines of communication with insurance providers so that they are aware of the status of your property at all times. Inform them of any changes in security measures, or other relevant details that could impact your coverage.

Comparison Shopping:

Don’t settle for the first insurance quote you receive. Take the time to compare offerings from different insurers to find the most cost-effective and comprehensive coverage for your unoccupied commercial property. At CIA Landlords, we guarantee that we will never be beaten on prices and that you will find the best unoccupied commercial property insurance premium for your needs!

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Who needs unoccupied property insurance?

The first thing that you will need to establish is if your property will be vacant for more than 60 days. If so, then it is a wise idea to start looking for the most suited insurance policy for your needs.

Usually, properties are open for an extended period of time if you are a landlord in between tenants if you are in the process of renovating or repairing your property, or if you are a landlord who is waiting for a property sale to be completed.

What does landlord insurance for unoccupied properties cover?

Unoccupied commercial landlord insurance covers the actual property and contents if needed. There are usually 3 levels of cover with this type of insurance, ranging from cover for major perils only to full peril cover together with the option of a 3, 6 or 12-month policy.

As mentioned above, there are different criteria that fall under this type of policy, such as:

  • Malicious damage caused by tenants up to a maximum of £5,000
  • Theft by tenants up to a maximum of £5,000
  • Loss of rent
  • Legal protection
  • Full accidental damage
  • Unoccupied property cover
  • Buildings only
  • Buildings and contents
  • Alternative accommodation

What isn’t covered?

Unoccupied commercial property insurance does not cover accidental damage or general wear and tear. These are criteria that would need to be taken care of by the landlord themself.

For more information on unoccupied commercial property insurance contact CIA Landlords today on 01788 818 670.

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