Unoccupied vacant commercial property insurance is not an easy cover to secure. We understand that. You might own a small lock-up shop, factory, warehouse or a large vacant industrial site. Your building and real estate might be vacant, unoccupied or is being developed. A comprehensive unoccupied commercial property insurance will lend you peace of mind and protect your investment. It is important that you secure your investment for any and all risks and secure the policy that fits your needs.
First, you need to understand what is covered and what should be covered under your unoccupied commercial property insurance. Depending on the scenario, you might be looking for more than what is usually covered. Most cover options are restricted to FLEA (Fire, Lightning, Aircraft and Explosion). While that basic coverage might suffice your needs, be aware that most policies do not cover floods, storms, malicious damage, escape of water, and similar risks. It can be a costly mistake. Find a brokerage that can underwrite for these additional cover options up to full perils.
Second, when you own a development property, you will want to insure the work and not just the existing structure. Properties need proper cover to eliminate any risks to your investment. The additional property development work needs to be well-insured to its full perils in case of loss of property. We advise our clients to cover more than the existing structure to mitigate any loss of investment of work in progress. It might be the difference between stoppage of development or quick recovery. Lack of cover can be a costly mistake. Assure that your insurance brokerage can cover this extra investment before you commit to a policy.
Finally, when choosing your insurance brokerage, understand their experience in and access to a wide range of insurance products. Not all insurance brokerages have the same access or expertise needed to get the cover you require. It is wise to work with a brokerage that is respected and reputable. At SJL Insurance, we work closely with our clients to advise them of all their options. We offer our own products to underwrite and can be more flexible than insuring under third-party insurers’ rules with restrictive pricing, cover and capacity. A reputable insurance broker will also have access to a wide range of programs through other MGAs (Managing General Agent) as well as Lloyds of London for larger commercial properties. And above all, it allows for better access to competitive rates which benefit our clients.
Our CEO Simon Lancaster featured on BBC radio recently as a vacant property insurance expert. Mediate the risk of your unoccupied commercial property by understanding what your cover insures and what you need especially for your development property. Make the right choice with an experienced insurance brokerage to advise you properly.