Vacant Building Insurance Ontario
What You Need to Know About Vacant Building Insurance
If you are a property owner who has a building or two that can sometimes sit unoccupied for extended periods of time, you should consider purchasing vacant building insurance. Whether the building is waiting for new tenants or currently undergoing renovations, because of its vacancy, it is open to increased risk.
Because of the increased risk, you may need more than your regular commercial property insurance policy. That is why it is essential to inform your insurer about your building’s vacancy and ask about purchasing vacant building insurance to protect you and your property from damages, injuries and lawsuits.
Insurance Coverage Options
Even though your property is sitting vacant, it still carries just as many risks as before. You still need to protect it from potential perils, such as fire, water damage, vandalism, injuries and more. A comprehensive insurance policy will help protect building owners from damages or financial losses while the building remains vacant.
At Insurance Hero, our insurance experts know how to ask the right questions to ensure you get the exact coverage your business needs. By partnering with us, we guarantee we will find you high-quality, comprehensive insurance coverage at the best price.
What is vacant building insurance?
Essentially, vacant building insurance is an insurance portfolio tailored to owners of commercial buildings that have less than 31% occupancy. It safeguards the property from everyday risks and perils, such as damages, losses, negligence and injuries. This policy is designed to protect commercial properties, including restaurants, retail, warehouses, strip malls, offices and more.
Is it more expensive to insure a vacant building?
Despite the fact that it needs less insurance, vacant property insurance is generally more expensive. Because the building is sitting empty, it is at a much higher risk of damage, and insurers know this. The cost of vacant home insurance varies depending on several factors, but you can generally expect the cost to be about 50% higher than your regular property insurance.
In order to calculate your insurance premiums, your insurer may ask some of the following:
- Property type and size
- Any amenities on the property
- Whether amenities are hooked up
- Vacancy reason
- Your coverage limits and terms