Vacant Properties

As today’s economy continues to weaken, there is a rise in vacant properties. These vacancies create special mitigation challenges. Vacant properties are vulnerable to a unique set of hazards that must be managed effectively. Even though these buildings are unoccupied, they should not be left unattended.

Undetected Damages: A small hazard like an exposed electrical wire or a slow water leak can be detected and repaired before they can cause a loss in a functioning building. However, when these everyday items are removed from an office building or property, they are less likely to be corrected in a timely matter and can grow into larger problems. The National Fire Protection Association reports an average of 14,900 fires occur in vacant buildings, causing over $118 million in property damage.

Mold is another major problem in buildings where water seeps or an air conditioning unit malfunctions. Mold can grow on wood, carpet, insulation, paper, and any organic substance. To alleviate these risks, it is a good idea to have someone walk through these vacant properties to check out these potential hazards. The person that does the walk through should know about the potential hazards as to not risk their personal safety.

It is important to maintain security on vacant properties as they may attract trespassers, arsonist, thieves or other criminals. Owners can be held liable for criminal activities or accidents that take place on their property.

Environmental Issues: If you are a building owner with vacant property, you need to consider environmental issues. If the facility has been used to store chemicals or other pollutants, these should be removed or adequately stored to prevent leaks or seepage. Hazardous materials can contaminate groundwater or natural resources if these materials leak. Building owners can be held liable for cleanup of natural resources.

Underground storage tanks are another concern to the environment and the property owner. Fuel tanks and other types of holding tanks buried underground can corrode over time. In order to prevent ground water contamination, they must be regularly checked. Cleaning up fuel tanks can be expensive; small tanks may run around $20,000 and can rise to $15 million for a large tank. It is a good idea to have a professional check the site for contamination on an annual basis.

The following are important tips to reduce liability and property risks in vacant property:

• Be vigilant about monitoring and securing vacant buildings, as they are frequent targets for arson and vandalism.
• Increase security and lighting to prevent arson and vandalism. Alert the police and fire department that the building is vacant. Keep a watch on the building and add additional locks for gates, doors and windows. Be sure to make staggered and frequent rounds.
• Test all fire protection systems alarms quarterly to ensure they are operative. Keep sprinkler systems in good operating order. Conduct weekly-recorded inspections of fire extinguishers, sprinkler control valves, and other fire equipment.
• Inspect all areas of the building at least one time per week. In the visit, you should check the general condition of the building, ensure the building is secure, and ensure that all fire and detection systems are in working order.
• Operate the boiler to provide heat and/or steam to prevent freezing of fire protection equipment (sprinklers, water supply tanks, sprinkler piping, etc.). Convert sprinkler systems to dry-pipe systems if the building heat is not provided or convert to non-freeze systems for small-unheated areas.
• Eliminate any fire hazards by moving combustibles. Keep grass short. Turn off electrical equipment and secure any utilities that are not going to be kept in service.
• Make sure flammable liquid tanks are drained and secured.

If you can avoid losses in vacant properties, you will be better prepared to continue your normal activities when the building is once again occupied.