Sedgwick
Lessons learned: the risks associated with vacant school buildings
A vacant school building: could be the scene of a kid’s grand adventure, or the setting straight out of a scary movie. Either way, when these structures sit empty for an extended period of time — whether they’re for sale, are in escrow or simply surplus property— some lessons get learned the hard way, with unanticipated risks wreaking havoc on the forgotten properties.
The good news? School districts can teach commercial property owners some valuable lessons. They know firsthand about the hazards these sites can hold — and how to identify and mitigate the underlying risks.
Identifying the risks
There are myriad reasons school facilities might go unused: student enrollment decreases, curriculums shift, budgetary measures in the district tighten. Any of these scenarios could lead to consolidation, relocation or unused space.
When these buildings are no longer actively being used, utilities and alarm systems are frequently disconnected. Fire extinguishers and other protective equipment are often removed. Maintenance services are seldom or no longer provided. If a sprinkler head is tripped or a pipe bursts, there’s no one there to address or report the situation, and extensive water damage can result. All carry added property and liability risks.
Kids might view a vacant building as a fortress for play, but unrestricted access for young trespassers could lead to injuries from an accidental fall, broken glass or faulty maintenance. The result can be sizeable liability claims and legal expenses. And bare walls might make the perfect canvas for creativity — unfortunately, they can also lead to contents being destroyed or a building being defaced.
With no school personnel onsite, outsiders can seek shelter in these vacant structures. Windows and doors are frequently shattered to gain access. Extensive trash and debris are left behind. Smoking and drug use are common. Fires started for added warm can quickly become uncontrolled, and with no extinguishers or alarm systems activated, can cause extensive damage. The clean-up costs in these situations can be significant. And if officials are called to inspect a building in which a group of people have set up camp, serious altercations and physical threats can create a very real safety issue and workers’ compensation exposure.
Because of its value, copper is in high demand; some thieves will break into vacant buildings and target the electrical boxes to swipe copper wiring and components. The damage created in accessing the building and tearing through the electrical panels and boxes to reach the copper far exceeds the value of the contents taken. Again, the school district is left with a sizeable bill.
Mitigating the risks
Luckily, there are steps that schools and other commercial property owners can take when faced with building vacancies. First, the property owner should keep utilities connected and operational. This will help ensure fire suppression systems or fire alarm systems are activated, and authorities are notified; alarm systems can also signal if a sprinkler head breaks or a pipe bursts, so personnel can respond and control water damage. Fencing, locks and video surveillance systems can also dissuade unauthorized people from entering the property. Periodic inspections of the premises can help detect potential hazards or risks before they become full-blown liabilities. Hiring security officers to patrol and monitor the premises can also stave off unwelcome visitors.
Risk controls do come with a price tag. But they also enable property owners to make calculated analyses, versus having to deal with the costly aftermath of an unrecognized exposure. This is one more way risk professionals bring value to the equation and help elevate the need for asset protection strategies.
For more information on how Sedgwick can help, please contact Marco.guardi@sedgwick.com or visit www.sedgwick.com.
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