Utah Vacant Property Insurance Policy Information
Utah Vacant Property Insurance. When a commercial property becomes vacant, the owners often wrongly assume their existing insurance policy will provide coverage during the period of vacancy. Since this is not usually the case, specific vacant property coverage is important for business owners to consider.
This Utah vacant property insurance offers broad package, or monoline, property and general liability coverage for vacant, and certain partially vacant, commercial properties, condo units, or rental space - with or without renovation work.
Utah vacant property insurance protects your unoccupied buildings from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
How Is Vacant Property Different From Commercial Property Insurance?
Since there are no operations there, vacant commercial properties tend to pose more risks than occupied ones. Acts of liability and fire, for instance, are potentially serious issues with a unoccupied property. Intruders might get hurt on broken floor boards or old fencing, and file a claim or sue. Some typical property insurance policies won't cover these types of risks on a vacant property, but Utah vacant property insurance is an option for you.
What Does Unoccupied Commercial Property Insurance Cover?
There are several increased risks associated with empty business properties. These include:
Liability: Optional liability provides coverage if you're found legally responsible for an accident on the vacant UT premises, that causes injury to someone or causes property damage.
Burst Pipes: This is a prime hazard for unoccupied properties due to the fact they are often left unheated. The water damage to vacant buildings is one of the reasons for which insurers insist on different coverage for unoccupied properties.
Flood and Fire: These hazards are considered by insurers to be more serious if they happen in unoccupied properties, as they stand more chance of getting out of control - which means greater levels of damage, and increased expense.
Squatters: Likewise, squatting is a serious problem for commercial landlords - not only because of the hassle and expense of removing uninvited occupants, but also due to the damage they may cause. People who enter a commercial property illegally and by force are unlikely to treat it with respect.
All these risks and hazards will be covered by a good Utah vacant property insurance policy - which gives landlords the peace of mind to get on with the other aspects of their business.
What Options Are Offered On A UT Vacant Building Policy?
Named Peril Coverage - This covers "perils" (things like fire, explosion, lightning, wind and hail) that are specifically named in your Utah vacant property insurance policy, subject to exclusions and conditions.
Agreed Loss Settlement (Total Loss) - If your unoccupied property is destroyed by a covered loss (a total loss situation), you receive the full amount of insurance you purchased on your Utah vacant property insurance policy, minus any applicable deductible.
Actual Cash Value (Partial Loss) - In the event of a covered loss (a partial loss or partial damage), this covers the cost to replace or repair your damaged building, with a deduction for depreciation, which reflects the age and condition of your building, minus any applicable deductible.
Landlord Flexibility - If you rent your property, and it goes vacant between tenants, you can cover it with a UT unoccupied property policy. When someone moves in, it can easily be endorsed to a landlord or owner-occupied policy, all without having to cancel the policy or write a new one. (not available in all states).
Short Term Coverage - You don't have to insure your vacant commercial property for the usual 12 months required by a normal policy. Most firms allow you to arrange cover for three, six, nine or 12 months, with the option to extend if necessary. So, you might take out a three-month policy to cover your UT property while it is up for sale. But if the sale takes longer than expected, you could simply extend the policy as required.
Full 12 Month Policy - You can get flexible payment plans and a pro-rated cancellation, subject to minimum earned premium. This comes in handy in case you move back into the commercial property, sell it, find a tenant, or need to cancel for some other reason before your year is up.
Special Coverage - If your commercial property is a historical building, has a thatched roof or any other less common features, you may need special insurance to protect it while it's unoccupied.
Requirements For Unoccupied Property Insurance
Before an insurer will offer you policy, they'll want to know what condition your property is in. If the building is in a poor state of repair with broken windows and boarded-up entrances, they're unlikely to insure it. It can also be a good idea to remove any valuables that you have at the property and keep them somewhere safer.
Some insurers may require you to take steps to protect your commercial property while you're away, such as having approved locks on your doors and windows, a working burglar alarm and timer-controlled heating to ensure that your pipes don't burst in cold weather. You may also need to switch off all utilities and drain the water system.
Vacant Property Insurance Cost
As with all insurance policies, there will be a number of factors that the insurer will take into consideration when calculating your premiums. The importance of each factor will differ between insurers meaning that premiums can vary, so it's important to shop around for a policy that suits your needs.
Typical factors include the value of the property, how long you wish to be insured for, why the property is unoccupied, the security that you have in place and your address. The security of your property will have a huge effect on your premium, so make sure that every entry point to your commercial property is secure. If you have an alarm, ensure that it's activated when you're away or it could invalidate your insurance.
Exclusions On Vacant Property Insurance
Every policy will have exclusions that apply to it, but they'll vary from insurer to insurer so always read your terms and conditions. Examples of typical exclusions to look out for include:
- Loss or damage as a result of unforced entry e.g. when windows or doors are left open or unlocked.
- Damage caused by major works, for example extensions and structural repairs.
- Damage caused by contractors (contractors should have their own insurance).
UT Vacant Property Insurance
A vacant property faces an increased risk when it comes to potential damage. Whether your property will be unoccupied for just a few days or for several months, make sure to update your insurance policy and follow a few simple steps to protect your building(s).
Utah Economic Data, Regulations & Limits On Commercial Insurance
If you are an entrepreneur who has your sights setting on opening up a business in the state of Utah or you are thinking about expanding your operation to the Beehive State, making sure that it offers a climate and demographic that will support your industry is vital to your overall success. If the state does not offer a positive business climate or demographics that will benefit from the products and/or services that you offer, there's a good chance your business could fail.
By assessing the employment rate as well as the key industries that are thriving in UT you will be able to determine if it is an ideal location for your enterprise. Additionally, knowing what type of commercial insurance coverage you'll need is important so you can make sure you are properly protected and set yourself up for success.
Economic Trends For Utah Business Owners
As of January, 2020, Utah has one of the strongest labor markets in the country. At this time, the unemployment rate was registered at 3.1 percent, which is lower than the national average of 3.6 percent. The unemployment rate to continue holding steady or drop even further, as more job opportunities are projected to become available.
Both large urban and small urban areas offer good opportunities for business owners. In a report that was issued at the end of 2018, six Utah cities were included on the list of top cities to start a business in the United States. These cities include:
- St George
Salt Lake City, the state's capital, and the surrounding areas also offer opportunities for business owners who are interested in starting a business in Utah.
The top industries that are poised to see the most growth in Utah over the course of the next few years include:
- Aerospace and defense
- Information technology
- Leisure and hospitality
- Petroleum production
If you are considering going into business in UT, having an operation in any of these industries will likely afford you success.
Commercial Insurance Regulations In Utah
The Utah Insurance Department regulates commercial insurance in the Beehive State. Business owners are required to invest in commercial insurance coverage, as it safeguards their interests, as well as the interest of all that are involved in the company, including employees, clients, and vendors.
Just like any other state in the country, there are specific types of commercial insurance coverage that business owners need to carry in UT. These coverages include:
- Workers Compensation Insurance: Pays for medical expenses and lost wages should an employee sustain a work-related injury or illness.
- Commercial Auto Insurance: For vehicles over a certain weight, covers any damages if a vehicle that is used for work-related purposes is involved in an accident.
Additional Resources For Commercial Property Insurance
Read up on small business commercial property insurance, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.
- Apartment Building
- Business Interruption
- Commercial Flood Insurance
- Commercial Property
- Condo Association
- Equipment Breakdown Protection Insurance
- Homeowners Association Insurance
- Inland Marine
- Manufacturing And Mercantile Rental Property
- Mobile Home Park
- Non-Residential Building Operators
- Office Buildings
- Safeco Landlord Insurance
- Shopping Center & Strip Mall
- Vacant Land
- Vacant Property
Rental property owners, real estate developers and property managers should keep an accurate survey of each property they own or that is in their care. This survey should include inventories of furnishings and equipment at those properties. These documents establish the extent of their insurable interest, facilitate the arrangement and placement of insurance and minimize controversy and confusion if a loss occurs.
Insurance coverage on property, general liability and professional or errors and omissions liability should be arranged and placed for every real estate and rental property risk.
The main goal of any commercial property insurance program is to protect the insured's real and business personal property. Buildings and their contents property usually represents a significant portion of its total assets, regardless of the size of the business. A commercial property program can provide the coverage you need if a loss should occur.
The ISO Commercial Property Building and Personal Property Coverage Form is an insurance industry standard that provides this needed coverage. As a result, it should always be reviewed and used as a benchmark for comparison when evaluating any commercial property coverage form.
This policy treats business personal property as more than just the contents of a building. When there is a limit of insurance on the declarations, property can be covered if inside the building or structure or within 100 feet of the building or premises and either in the open, or even in or on a vehicle.
There are many endorsements available to tailor the ISO Commercial Property Coverage Forms. Some are mandatory for all policies while others are mandatory for specific classifications and types of business. Others are optional and permit a standard form to be customized to meet a specific risk's coverage needs. Endorsements broaden, restrict, delete, modify, or add coverage.
These policies can provide the following additional coverages for small specific limits of insurance: debris removal, preservation of property, fire department service charge, pollutant clean up and removal, increased cost of construction and electronic data.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Contractors' Equipment, Fine Arts, Cyber Liability, Employment-related Practices, Automobile Liability and Physical Damage, and Stop Gap Liability.
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