Insurance Coverage and the Risk of Purchasing a Vacant Building

Originally published by Christina Phillips.

Buildings that are vacant or unoccupied for extended periods of time present an increased risk of damage from theft and vandalism, especially in an urban setting such as Chicago. Recognizing this increased risk, most property insurance policies contain a vacancy provision which excludes coverage for losses resulting from vandalism, theft and other specified hazards if the building was vacant for more than 60 consecutive days before the loss. But what happens if the building was vacant when you purchased it? Does the prior owners’ vacancy count against the 60-day period?
This is the situation faced by an insured several years ago in a case entitled West Bend Mutual Insurance Company v. New Packing Company.1 New Packing owned and operated a meat packing business in Chicago, Illinois insured by West Bend. Thereafter, New Packing purchased a warehouse which, at the time of its purchase, had been vacant for more than 60 consecutive days. West Bend issued an endorsement to the policy…

.

Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.

from Texas Bar Today http://ift.tt/28XL2rM
via Abogado Aly Website