There are many situations in which someone may own a vacant building or business premises. Maybe they plan to start a business there, or maybe they are waiting for the perfect tenant to take over a lease? Whatever the situation, leaving a space unoccupied can be confusing from an insurance perspective. On top of this, these can sometimes pose a problem for many insurance companies. Businesses should always be informed about the issues surrounding vacant properties and how best to protect their business. Luckily, isure has a list of tips for managing a vacant building or unoccupied property.
Is Your Property Vacant Or Unoccupied?
To begin, we must first understand what classifies a property as unoccupied or “vacant.” Many property owners are unaware that their properties are considered vacant. You may have recently purchased a property, and your previous one is sitting, waiting to be sold. You might be a snowbird flocking south, or you might have a gap in tenants. Many insurers will have a different definition of what unoccupied or vacant means. However, there is one key difference. An unoccupied property is currently empty, but you intend to fill it with tenants or return to it in the near future. On the other hand, a vacant property is one in which all occupants have left with no intention of returning.
Keep Some Lights On
This one may not seem like a big deal, but it’s actually crucial! When your business is unlit for long periods, people notice and may realize it is not currently in use. Overall, this isn’t a big deal, but it can become one if someone unfamiliar with the situation notices your building is unoccupied. A dark building can attract thieves and trespassers. Even if there is nothing in your building, leaving lights on at night will still deter vandalism, such as broken windows or graffiti. Keeping your building lit at night is a great way to deter people. A good idea is to install some motion-censored lights. These are a good investment, as they can be used even after the building becomes occupied.
Remove Valuables From Your Vacant Building
When leaving your business vacant, it is still important to remove all valuables if you can. This is recommended, even if you will only be gone for a short period of time. Make sure to remove all cash and receipts from your business, and do not leave any valuables visible or accessible. Make sure you empty all safes and tills. If possible, putting your valuables in an off-site storage unit, such as a rental unit or garage, is also a great idea. If this can’t be done, move any items away from windows or places where they are visible.
Make sure to keep your cash drawers open to show they are empty, and empty any ATMs on site. It is also a good idea to post a ‘No cash or valuables on premises’ sign to deter thieves. If you are a bar or restaurant, remove them from the bar and store them. At the very least, make sure there is no alcohol visible from the outside!
Secure The Premises On Your Vacant Building
Even with everything hidden and out of sight, the most effective way to deter thieves or trespassers is to secure your business properly. Make sure your doors and windows are properly locked and secured. It is also crucial to deactivate all scheduled FOB door openings intended for cleaners or deliveries. A good way to deter thieves is to post a notice on your door that your business is monitored 24/7. You can also state that there are employees on site. Even if this is untrue, stating it may be a good deterrent. That said, it is strongly recommended that you install an alarm system. Additionally, if you have a kitchen in your business, make sure you disconnect all gas lines from their source before leaving it vacant.
Visit Your Vacant Building Regularly
Another great way to make sure your unoccupied or vacant property is safe and secure is to visit it regularly. When doing so, monitor and manage inventory and storage conditions. It is important to keep a log of your visits so you can prove to your insurance company that you often inspect the premises. It is a good idea to spread out your visits so as not to create a noticeable pattern.
When inspecting the premises, check for water leaks, ensure your sump pump is working, and look for exterior damage. Look out for suspicious activity near your business, such as large vehicles casing the building. Develop an action plan in case a break-in occurs to ensure your safety. If you are in a shared space, such as a strip mall, businesses can pool resources to hire a security service and install security systems.
Know Your Business Insurance Policy
Insurance companies have different requirements regarding unoccupied or vacant properties. Some policies require business owners to inspect the premises daily, while others require the business to be protected by a functioning ULC burglar and fire alarm. The only way to find out what is required is by contacting your insurance broker. This way, you can understand your responsibilities and ensure your property remains insured. We offer some of the lowest rates in Ontario and take pride in protecting business owners and buildings across the province.
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