Ward, Hayden / Wednesday, February 23, 2022 / Categories: Vacation Rental Insurance Blog Rotator The Risk of Owning a Vacant Property Owning a vacant building can pose serious liabilities due to it being more susceptible to vandalism, undetected repairs, fire and other losses. The insurance risks associated with owning vacant property can be extensive, and to ensure you are adequately protected, it's important to know the risks. Potential Risks of Vacant Properties Vacant properties are an obvious target for theft, trespassing and vandalism. In addition to any loss or property damage that may occur, keep in mind that the owner of a property can be held liable for criminal activities or accidents that take place on the premises. In addition, they are more susceptible to undetected damages, such as fire, water damage, electrical explosions, wind or hail damage, and mold. The Most Prevalent Risks to Vacant Properties: Fire Lightning damage Explosion Windstorm or hail damage Smoke Sprinkler leakage Vandalism (no one is present to deter vandals) Malicious mischief on the property and general property destruction Presence of squatters on the property causing damage without the owner's knowledge How to Mitigate Vacant Property Risks In addition to extending their insurance coverage, there are some simple steps that owners of vacant property can take to limit their risk and liability. Prevent vandalism: Notify local authorities of vacated properties so they can watch for criminal behavior. Maintain an “occupied” appearance to the property—mow the lawn, have mail forwarded or picked up regularly and install light timers and/or a security system. Limit liability: Make sure the property is free from significant hazards (e.g., broken railings or steps, broken windows) that could cause injuries to anyone on the property—this could include police officers, maintenance workers, firefighters or even trespassers. Avoid damage: Performing regular maintenance on the property can decrease the odds of sustaining damage. Here are a few ideas to have on your radar: Regularly inspect it for damage or threats of damage Install smoke detectors that are tied to a centrally monitored fire alarm system Make sure the heating system and chimney are cleaned Seal off windows and letterboxes Have the plumbing system winterized to prevent frozen pipes Install alarm systems that are triggered by intruders, fires or floods Periodically inspect roof, insulation, attic, basement, gutters Insurance Solutions for Your Property Under certain policies, vacant property insurance protects against liabilities in the event someone is injured on your property and sues for damages. In some cases, it is required when a property owner dies and the property goes to an estate sale. It may also be a viable option if the property is in the process of being sold or if it is under construction and is uninhabitable. Unfavorable incidents can occur, but vacant property insurance can provide the necessary protection. Begin a quote today to learn more. This blog may contain scenarios that are provided as examples only. Coverage is subject to the terms, conditions and exclusions of the policy issued. The information provided is general in nature and may be affected by changes in law or the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information. 4 Vacation Rental Trends to Watch Out for in 2022 CBIZ Celebrates 3rd Annual Vacation Rental Week Print 12459 Rate this article: 4.5 Tags: personal liabilitycommercial general liabilityprotectionVacantcommercial propertySecond Home