14 FEBRUARY 2014 Claims Magazine PropertyCasualty360.com
RISK MANAGEMENT
Cities like Detroit, Cleveland, and Las
Vegas are dealing with thousands of un-
developed lots, empty houses, and even
entire neighborhoods, as well as com-
mercial, retail and industrial properties.
This has not only resulted in an increase
in crime but also in lower property values
for surrounding areas. Local communities
left to care for these properties by default
do not have the necessary time or resourc-
es to keep the structures in good condi-
tion, thus causing an increase in exposure
to risks like vandalism, fire, theft, and
water damage. In turn, these risks hinder
the possibility of resale and revitalization
in the future as economic conditions con-
tinue to improve, leading to possible set-
backs throughout our communities.
Environmental Concerns
Several environmental risks are asso-
ciated with all types of vacant proper-
ties. Older buildings may have existing
asbestos insulation and tiles, as well as
lead paint and lead piping. All buildings
constructed before 1980 have the poten-
tial to contain both asbestos-containing
materials and lead-based paint. Leaking
heating oil tanks, pipes and appliances
are prevalent, as well as any chemicals or
lubricants stored on premises in garages
or sheds.
Unknown underground storage tanks
may exist onsite as well. Underground
storage tanks that are not maintained
As America’s real estate crisis slowly recovers along with our economy, more than 14 million properties remain vacant or abandoned across the country. Real estate is considered
a vacant property when it is not currently occupied or in use. This
includes empty lots as well as structures.
Vacant Properties
Pose Environmental Risks
Empty Buildings and Pollution-Related Liability
