There are a host of risks and concerns associated with owning or managing vacant property. Vacant buildings 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.
Here are ways to mitigate and take action to address those risks:
Potential Risks:
Vacant properties are susceptible to undetected damages, such as fire, water damage, electrical explosions, wind or hail damage and mould. Many of these incidents occur in vacant buildings due to small, undetected maintenance issues (where someone in an occupied building would have recognized and handled the problem before it caused a larger loss).
In certain facilities, there may also be environmental hazards that the owner needs to consider. Facilities that are used to store chemicals or other pollutants should ensure that such materials are removed or securely stored—the owner may be held liable for any hazardous materials that contaminate groundwater or other nearby natural resources. Also, underground fuel tanks present serious challenges and should be frequently and carefully inspected by professionals.
Other Ways to Mitigate Risks:
In addition to extending coverage, there are some simple steps that owners of vacant property can take to limit their risk and liability.
Find Out More:
In many cases, insurance companies will require property managers to have certain policies and procedures in place in order to obtain or maintain coverage. Assessing your exposures and taking the appropriate precautions can go a long way toward protecting your business.
This list is not exhaustive of all the risks and exposures property managers may face. Download our “Loss Control Questionnaire: Residential Property Managers” guide for an in-depth list of more ways to minimize gaps in your risk management: