Vacancy can cost you much more than just loss of renters!
Did you know a “vacant” building is defined as a building on a permanent foundation, that is not intended for demolition, is completely vacant or unoccupied, and is not undergoing any repairs, restoration, or remodeling of any kind.
Commercial property policies are underwritten based on the type and use of the property. If you insured your property as an Apartment Building, occupied, and then evicted your tenants to repair or remodel the property, vacant, you may have reduced your coverage based on the terms of the insuring contract (your policy).
Many standard property policies contain clauses which are triggered when occupancy rates are reduced below a given percentage. These clauses may increase the deductible, reduce coverage limits, and even change the property valuation from Replacement Cost to Actual Cash Value. You will not enjoy the same coverage provided by the original terms of your standard property policy.
Based on your objective with the property, you may require a Vacant Building Policy, a Course of Construction Policy or a Course of Remodeling Policy.
At Commercial Coverage Insurance Agency, We Work for YOU! Call us today to review your options and discuss your insurance strategy.
877-776-5900 Option 1 (for quotes)