People build commercial properties for their use or rental income. Commercial properties fetch higher income than a residential property. A commercial needs Business landlord Insurance to safeguard the owner from various calamities. Some natural calamities like flood, fire or any other unfortunate unforeseen incident.
Commercial property insurance is done with occupancy in mind. People do not think about any safety measures for an unoccupied commercial property. People take Business insurance in Ireland and think they are fully safe if the building is not occupied. Several Insurance companies have a separate clause for unoccupied Business Insurance in Ireland.
The liability, the commercial property owner will face in case of a fire accident in an unoccupied commercial building is different from an occupied commercial or unoccupied home. Many unoccupied commercial property owners will be frustrated when the insurance company says the commercial business insurance they have purchased is worthless as the insurance is valid only for an occupied commercial property.
Business Insurance for occupied commercial property is different from an unoccupied commercial building. Many owners will think the commercial property owner insurance in Ireland as an unnecessary expense as the building is unoccupied and as such does not fetch any income.
The risk of an unoccupied commercial property
The risk of an unoccupied commercial property face is much more than an unoccupied building. When the building has occupied the tenants in the building will prevent any untoward accidents to escalate into a major incident to damage the property. But, an unoccupied commercial property does not have any such safety net from vandalism, fire accident or any damages because of heavy rain or flood.
So, it is simple to say an unoccupied commercial property is liable to more risk than an occupied commercial property.
There is a difference between an unoccupied and vacant property. An unoccupied property will have furniture or personal item without any person. A vacant property will have no furniture or person inside the property. The difference should be mentioned clearly during insurance purchase as the liabilities are different for both. It is up to you to get the clarification from the insurance company regarding the classification.
Even minute difference will spoil the coverage of your property and as it differs from company to company and the owner study the insurance policy in detail to avoid any problems later. Many insurance companies have different parameters to classify a commercial or business property as an unoccupied commercial property.
Why it is important to have Insurance for an unoccupied commercial property?
A standard Business Insurance policy does not cover any damages in commercial property if it is unoccupied. When a property is unoccupied for a long period and if any damage occurs inside the building, many standard business policies do not entertain any claim from the building owners.
Emergency services are sent faster to an unoccupied property and for various reasons. The insurance companies think the risk an unoccupied property face is higher than an occupied building. Insurance for a vacant building is very specific and can have cghanges as per the owners’. The requirement and the premiums for such policies vary as per the need.
Any property owner will have a standard insurance policy and the insurance company might advise you for a package deal. You can also opt for a separate policy for an unoccupied period. The reason for the unoccupied period can be briefed to the company. After the briefing, they can buy a suitable policy as per the need and period.
Any insurance policy should save you from any damages to your property. So, it is always better to get a detailed briefing regarding the necessity of insurance for your unoccupied property. It is worthless if your Insurance does not provide you cover. As the insurance for the unoccupied property is higher than a standard policy it is always better to have a good briefing from the Agent. No doubt it should be regarding the policy before opting for any business policy.