As a property business owner, you may own a handful of vacant properties. As foreclosures are widespread due to the pandemic, it’s a good idea to invest in unoccupied properties. However, you must come in prepared and ready for some risks associated with owning them. The good news is that there are ways to effectively avoid these potential risks, one of which is having comprehensive insurance coverage.
In this article, we will share the potential risks of unoccupied property and how to avoid them. Keep on reading to see how your property insurance can help!
Potential risks of unoccupied property
Properties are excellent investments, and they can be utilized for various business purposes. However, turning them into rental or commercial properties takes time. The chances are that they will remain vacant for a few years, which is when these potential risks may arise:
- Theft: If you leave valuables inside your vacant property and have not hired any guards to secure the area, it can be the target of burglars.
- Trespassing: With no property caretakers, it’s easy for trespassers to invade and occupy your property without your knowledge.
- Vandalism: The last thing you’ll want to happen is to see vandals all over the place, damaging your property’s interiors and exteriors.
- Undetected damages: If left uninspected and unmaintained for long periods, your property will be subject to water, fire, and mold damage.
- Environmental hazards: Your unoccupied facility that stores chemicals can leak and cause environmental hazards to the surrounding community.
- Criminal activities: If you leave your property unoccupied and uninspected, it can be subject to illegal activities. Even if you’re not involved, you can still be held liable for neglecting your property.
How to avoid these risks
To avoid the potential risks outlined above, here’s how to reduce the liability of your unoccupied property:
- Avoid damage: Be sure to inspect, clean, and maintain your property regularly. To prevent minor issues from escalating to extensive damages, be sure to fix them as soon as possible.
- Prevent vandalism, theft, and criminal activities: Be sure to inform the local authorities about your vacated properties. As much as possible, maintain an “occupied” appearance of your property and hire security officers for your property, if possible.
- Limit liability: To avoid property liabilities, make sure to free your property of significant hazards like broken railings and windows, among others. Also, always remember to keep your property in top shape and condition to prevent safety hazards.
How property insurance can help
Even if your properties are not unoccupied, the best course of action is still to get insurance for your property. If something happens to it, you will be financially insured and won’t be held legally liable. However, be sure to shop around and compare insurance offers, and don’t settle for the first offer on the table. From there, settle for the one best suited for your unoccupied property in terms of policy coverage and insurance premium.
Here at Quesurance, we specifically offer vacant home insurance in Florida. Our policy includes peril coverage, vandalism, and malicious mischief coverage, full 12-month policy, liability coverage, agreed loss settlement, actual cash value, and landlord flexibility. If you need a vacant property insurance quote, we’ve got you covered!
Conclusion
At this point, we’ve covered the potential risks of unoccupied property and how you can avoid them. To that end, be sure to consider all the valuable information discussed above, particularly how you should take advantage of property insurance. Ultimately, your vacant properties must be your assets, not your liabilities!
We’re an insurance company in New Jersey, offering a wide range of insurance options, such as auto, home, business, or flood insurance. If you’re looking for insurance for your unoccupied property, get in touch with us today to get a quote!
