It’s not news but it’s not good
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The other shoe is falling
This comes as no surprise. We’re all accustomed to the sight of empty and abandoned homes. Coming soon: more see-through strip malls.
What else is new? When their customers go broke, lose their homes and cut spending en masse, small business tends to follow suit.
If you’re in the commercial real-estate business, may we offer our deepest sympathies and suggest that you check the vacancy provision in your commercial property insurance policy. You might discover that it defines your property as “vacant” when less than 31 percent of total square footage is rented or used by the property owner for customary business operations.
That’s not a big deal, unless your commercial property remains “vacant” for more than 60 consecutive days. In that case your insurance company probably won’t pay for loss or damage caused by vandalism, water damage, glass breakage, theft or attempted theft.
Maybe you already knew that. Do you also know that what your insurance company remains willing to pay for loss or damage to your vacant property is automatically reduced by 15 percent?
What to do? Maybe nothing, except continue to pay the premium on your existing policy and keep a close eye on your property. On the other hand, if you weren’t aware of this and we’ve managed to add another brick of worry to your wall, consult a good commercial-insurance agent to discuss your particular situation.
