A Video Explaining the Underwriting Concerns About Unacceptable Risks
b'
The Morale Hazard and Unacceptable Risks
\\n\\nThe property owner must understand that some risks are unacceptable under any circumstances to most major insurers. For example:
\\nVacant property represents an unacceptable risk to many insurers. A critical factor in acceptance is the length and cause of the vacancy and the expectations of the insured for the future. Examples of a vacant property include the following:
\\nA commercial building containing no personal property is considered to be more hazardous than an occupied building by many commercial fire underwriters.
\\nAlthough electrical service is usually off, and natural gas does not enter the facility, a vacant building is not subject to the many hazards of occupancy, such as cooking, heating, or smoking. However, experience has proven that vacant property is more subject to vandalism and malicious mischief losses precisely because it is empty.
\\nA vacant building is also susceptible to windstorm damage since no one is present to secure loose fittings.
\\nA vacant building is more susceptible to the problems caused by rats and other rodents.
\\nIf the vacancy is caused by a shift in population or business, or by construction elements that make it unsuitable for most occupancies, or by poor economic conditions, the property may become a burden to the owner that can be \\u201csold\\u201d to an insurer by means of a carefully arranged fire or vandalism claim where the fire or vandalism damage is done at the insistence and request of the insured.
\\nEven a new building is subject to scrutiny until it is occupied.
\\nSome insurers are willing to write vacant properties on a restrictive and limited policy for a higher than normal premium.
\\n\\n--- \\n\\nSupport this podcast: https://podcasters.spotify.com/pod/show/barry-zalma/support'