When relocating offices, it is not uncommon to encounter a time gap between legally acquiring your new premises and actually moving in. A similar situation may arise when you have already moved out of your previous location but remain legally responsible for it for a few days or weeks afterward.
In both of these scenarios, as well as others like them, significant insurance considerations may come into play. These arise due to what are known as “unoccupied property” exclusions.
Ownership or Rental
If you own either or both of your commercial properties (the “old one” and/or the “new one”), it is crucial to ensure that they are adequately insured to protect your capital investment.
In the case of rented commercial premises, the issue is slightly different but equally important. Your lease or rental agreement may impose a legal obligation to ensure that your insurance fully covers the property against a range of specified risks.
Therefore, regardless of the ownership status of your properties, there will inevitably be insurance matters that require your attention. And in case you need to break a rental agreement bc, see this article.
Insurance for Unoccupied Properties
You may already have some form of insurance coverage in place that protects you against costs resulting from events such as fires, burglaries with theft, and vandalism that could impact your belongings, as well as the structure and fittings of the property you occupy.
If you do not own the property, it is typically the owner’s responsibility to have building insurance in place to cover natural risks such as floods, storms, and subsidence.
Regarding your insurance policy, it is highly likely that it contains limitations regarding unoccupied properties. In other words, certain parts or even the entire policy may become null and void if the property remains unoccupied for a specified period of time.
This is because unoccupied properties are generally at higher risk of specific problems, including burglary and vandalism, compared to occupied properties.
Your policy might offer coverage for situations like public holidays or extended holiday shutdown periods, or it might not. It is essential to be aware of this before deciding to leave an owned or rented property unoccupied during your office relocation process.
How Your Moving Company in Burnaby Can Assist
While it is advisable to consult your insurance provider regarding the specifics of your existing policy, your professional office movers could potentially provide valuable information as well. They are likely to have encountered various complex occupancy situations involving delays in relinquishing or taking up occupation of commercial premises. They may be able to suggest additional options to reduce your insurance risks.
If you are concerned about potential delays in vacating your old premises or moving into your new ones, and how they might impact your insurance, it is crucial to gather as much advice as possible. Your furniture removals company could have useful insights on this matter.
