Your client’s vacant property is inherently exposed to risks. Thus, they must ensure they maintain and protect this property. What can your client do to reduce liability and risks associated with their vacant property? First, let’s discuss the type of risks your client’s property is exposed to.
Risks for Vacant Properties
Whether it’s a building, a rental home, or a vacant lot, your client’s property is at risk. Often, uninhabited buildings are targets for theft, vandalism, and trespassing. Perpetrators can either damage the commercial building or mine copper pipes.
Your client can become liable when they don’t do anything to prevent these thefts or vandalism on their property. They need to understand that commission of a crime can result from an accident to an unsuspecting victim who happens to be in the same area as the criminals.
Aside from human-made damages, the vacant building is vulnerable to unseen damages or normal wear-and-tear brought by weather elements. A commercial building can be the source of electrical explosions or fire because no one is maintaining it.
There are more than 30,000 incidents related to fire alone in vacant properties. Your client can prevent damages by assigning building maintenance to check on the property regularly. This would ensure that faulty wires, broken furniture, or fixtures are replaced or repaired as soon as possible.
Environmental hazards could also be an issue, especially for companies that used to store chemicals and other corrosive substances on the property. These unattended raw materials could cause leakage and may endanger nearby residents and animals.
If your client didn’t dispose of these pollutants and waste property, they could be liable. Residents who are a victim of hazardous leakage could sue them for willful neglect. Your clients should assign a professional inspector to check on these pollutants and waste while waiting for the scheduled disposal.
Mitigate Risks with Simple Actions
Your client can mitigate the risks associated with vacant commercial properties using proven and simple actions.
Insurance Coverage
The first step to mitigating the risks for your client’s property is to get a Commercial Insurance New York. With insurance, your client’s property is protected from these risks.
Your client can rebuild or repair the damages done by criminals. Everyone knows how expensive these repairs can be. However, with the policy coverage, your client won’t have to worry about it. They can claim benefits if it’s a covered loss.
Not only that- they are also covered with general liability. If a person gets injured while passing by their property or within the premises of the property, they can sue your client. Without coverage, they would need to pay these litigation costs out of pocket. However, insurance can make their life easier.
Your clients don’t have to spend a large sum of money settling litigation costs. The coverage can both save your client from stress and costly payments.
Remember, though, that most insurance policies expire. An example is the homeowner’s insurance. When a rental property is vacant for more than 30 days, the coverage also expires. But, your client can protect their properties using vacant property insurance or something similar.
Also, your client has to understand that vacant property is a lot more difficult to insure because of the associated risks. The premium could also be higher than the regular insurance coverage. Thus, your client mustn’t over-extend the period of the property being unoccupied.
Regular Maintenance
As discussed earlier, regular maintenance is important in mitigating associated risks. The insurance coverage becomes useless if your client doesn’t do their part.
Your client needs to conduct regular maintenance on the vacant property. They can also install detectors, so they receive timely notifications about an impending disaster. These actions would ensure that theft and fortuitous events are controlled.
Also, your client has to clear up obstacles and other hazards. Remove any points of interest by theft or burglar. With these simple actions, your client can limit the risk of liability that may arise from litigation. Your client may also encourage your neighbors to report any vandalism or suspicious activity going on while they’re away.
Vacant properties are the hardest to maintain and to insure. Thus, your client shouldn’t prolong a building’s vacancy.
About Snyder Specialty
Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039.
