COVID19 has continued to affect commercial developers, property managers and many other commercial businesses. One result has been an increase in vacant commercial buildings. Most insurance companies consider commercial property “vacant” after 60 consecutive days if the property has 65%-70% or more of its square footage not rented or “unoccupied”, and not being used to conduct normal operations for which it was designed.
Many cities have commercial property vacancy rates of over 15%, and some of the larger cities are over 20%. For property owners, having a vacant building is a major risk that needs to be managed.
Vacant Buildings Can Be Subject to Increased Losses Including:
- Glass or window damage
- Water damage
- Property managers
- Banks and mortgage companies
You can protect your building with a specially designed policy for vacant properties. These policies are intended to provide full coverage in the event of a loss and can be purchased on a short-term basis. Most vacant insurance policies are available for 3-month periods, but often coverage can be extended up to a year.