Vacant Commercial Properties a Bad Risk ?

Prior to the recession, the commerical insurance markets were competing heavily for property accounts. I believe that the soft market started with the reduction of property rates. However in the recession the insurance markets are trying to figure how to price and cover all those commercial buildings that are now vacant. These are the same buildings that the insurance companies competed hand to hand to get on the books, and now insurance companies are looking to shed these risks. Clients and agents are scratching their heads saying, hey these are not bad risks. Underwriting says that the risk increases when there are no tenants and landlords lose income. So how is the industry going to handle this. Well companies will stay on these risks but rates will have to go up. So what started the soft market 7 years ago , will most likely start the hard market of 2011 or 2012. Until next time be careful out there and know your risks.  K

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