We all know how insurance can help save and progress your financials and business and thus, an insurance plan is extremely important to subscribe and invest into. Most common types of insurances are homeowner insurance, business insurance, etc. Most people do not know or understand some of the secondary insurance plans which are of prime importance. This includes the vacant building insurance; most people don’t consider this plan until it’s too late and the damage is already done. Before we move onto explaining what the insurance covers and what might be the best plan for you, it is vital that you understand what a vacant building is. We’ve already described it in detail previously but will also lightly touch on it here too.
What is a vacant building?
A vacant building has to include the entire building in the premise of its definition. The building is considered vacant only until “at least 31% of the total cumulative square footage is rented to a lessee or sub-lessee and used by the lessee or sub-lessee to conduct its customary operations or is used by the building owner to conduct customary operations.”
Consequently, if the aforementioned criteria aren’t met, your building won’t be considered vacant.
Why do you need a vacant building insurance?
To be fair, it is not common to consider this plan unless you do not plan on leaving your building unoccupied for a long time span or know that it is going to be occupied soon enough. Usually owners think that their general liability insurance would also extend to their vacant building. Although, this is true in some cases, however, rules do apply and you would need to check with your insurance company for specifics.
However, if you are to leave your building alone and vacant for an extended period of time – say more than one to three months, investing in a vacant building insurance plans becomes vital. Here’s why:
- Vacant buildings are prone to vandalism
- Pipes can burst due to weather conditions
- There may be break-ins
- Vacant buildings can also be thieved off
What does a vacant building insurance cover?
The answer to this question isn’t necessarily precise as you can choose your plan according to your own needs. Generally, this insurance covers buildings that are being sold, undergoing repairs or renovations, or otherwise not being lived in on a full-time basis. At Paradiso insurance, we try our best to help our customers and clients to the maximum. Therefore, to make things easier, we also offer our clients a “vacancy permit”. In general, it has you covered in an instance that your building may be vacant and is included in an additional premium, usually cited through an additional provision. This form changes the policy wording so that it provides coverage for the property during specific time periods that it is vacant.
Our knowledgeable and insightful team of experts and customer-service specialists alike at Paradiso insurance are extremely mindful and alert to the need of all out clients and want them covered from any potential mishaps under the sky. This is why, we urge that if you’re already a member of our Paradiso family, you inform us beforehand in case of leaving your building vacant, and if you want to sign up with us and need more information, we are always here to help you out.