Vacant buildings come with a completely different level of risk compared to occupied properties. When no one is regularly present, small issues—like a minor water leak—can turn into major damage before anyone notices. Vacant properties are also more attractive targets for vandalism, theft, and even arson. Because of this increased exposure, insurance companies treat vacancy very differently than standard occupancy.
Most commercial property policies include a vacancy clause that limits or excludes certain types of coverage after a building has been vacant for a set period, often 60 days. After that point, coverage for things like vandalism, water damage, or glass breakage may be reduced or eliminated entirely. Many property owners don’t realize this until they file a claim and find out the loss isn’t fully covered.
If a building is going to sit empty—even temporarily—it’s critical to notify your agent right away. There are policies specifically designed for vacant properties that restore and tailor coverage to the increased risk. Taking a proactive approach ensures you’re not left exposed during a period when your property is actually more vulnerable than ever.
Stay Tuned For Other Great Reads In This Month’s Newsletter
- Environmental & Pollution Liability: Do Contractors Need It?
- Business Owners Policy (BOP): What’s Included and Who Needs One
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