Vacant Land Insurance
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Vacant Land Insurance

An Introduction to Vacant Land Insurance

An Introduction to Vacant Land Insurance

Your clients probably don't think to check their General Liability Insurance when their commercial tenants move out – they're usually too busy finding new occupants. But they may not realize that their commercial building's dwindling tenancy can cause them to lose key coverages and leave them unprotected. Help your clients fill this coverage gap with Vacant Land Insurance.

What Is Vacant Land Insurance?

What Is Vacant Land Insurance?

Vacant Land Insurance provides liability and property coverage to commercial property owners when their building or land is unoccupied. Generally, property is considered vacant when 70 percent or more of its total square footage is either not rented or is not used to conduct customary operations. For example, Vacant Land Insurance may cover…

  • An office building that is for sale.
  • A strip mall after the majority of tenants move out.
  • An apartment building in need of new renters.
  • A vacant lot prior to development.

When a building becomes vacant, the owner usually loses the protection offered by their commercial insurance policies. It might seem counterintuitive to insure unused property, but consider the cost to the owner if a fire destroys it. The fire not only takes away the property, but it also takes away the source of income. The owner could also be on the hook for any other damages the fire causes.

Today's market has plenty of vacant property risks. Advertise your ability to quote Vacant Land Insurance to attract new clients and to keep current clients in your book while their property is unoccupied.

What Does Vacant Land Insurance Cover?

What Does Vacant Land Insurance Cover?

A vacant building or empty lot can face the same perils as any other property, such as damage from:

  • Fire.
  • Vandalism.
  • Windstorm.
  • Hail.
  • Lightning.

Additionally, unoccupied areas can attract children who want to explore the property. Your client can be held liable for injuries that happen on the premises.

Potential property damage and lawsuits can cost your client money and time, but Vacant Land Insurance can help pay for repairs and legal fees. The policy may cover…

  • Buildings valued up to $3 million.
  • Renovations worth 50 percent of building value up to $400,000.
  • Replacement costs for buildings less than 25 years old.
  • Up to 500 acres of 100 percent vacant land.

There are some conditions that may impact your client’s eligibility. For example, the presence of a water hazard or the condition of the building may make your client’s risk more difficult to place.

Why You Should Quote Vacant Land Insurance

Why You Should Quote Vacant Land Insurance

Vacant Land Insurance provides you with both growth and retention opportunities. When a potential or current client discovers they need this insurance, they can turn to you for coverage.

Additionally, the program’s flexibility – which offers 3-, 6-, 9-, or 12-month terms with options for extension or full renewal – means your client can choose the appropriate term based on when the building regains tenants.

For more information, call us at 888.466.8868 or email [email protected].