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Business Insurance / Vacant Property

Vacant Building Insurance

This is the coverage nobody thinks about until a property has been empty for a while. Most property policies contain a vacancy clause that restricts or suspends coverage once a building has been unoccupied past a stated period, commonly 60 days. The policy does not lapse. It just stops responding to the losses vacant buildings actually suffer.

What It Covers

The parts of the policy, in plain terms.

  • Property damage while vacant

    Fire, wind and other perils on a building the standard policy has effectively stopped covering.

  • Vandalism and theft

    Usually the first thing a vacancy clause removes, and the most likely loss on an empty building. Copper and fixtures go first.

  • Liability

    An empty building still attracts people. You remain responsible for injuries on the property.

  • Renovation and builder's risk

    For a property being rehabbed rather than simply sitting, which is a different risk and often a different policy.

How it plays out

A commercial building has been empty for four months while it is on the market. Pipes freeze in January, burst, and run for days before anyone notices. The standard policy's vacancy clause had already kicked in and the claim is denied. A vacant property policy is written for exactly this.

Frequently Asked Questions

Vacant Building questions we get.

When does my building count as vacant?
Policy language varies, but a common threshold is 60 consecutive days without normal occupancy or enough contents to operate. Some carriers distinguish vacant from unoccupied. Read the clause on your specific policy or send it to us and we will read it.
The property is between tenants for a few weeks. Is that a problem?
A short gap usually is not, but it depends on your policy's threshold and on whether the contents are still in place. If the gap might run into months, that is the point to call.
What if I am renovating rather than just holding it?
That is often a builder's risk policy rather than a vacant property policy, and it covers materials and work in progress. Which one fits depends on the scope of the work and whether anyone is occupying the building.

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Also worth a look

Other coverage we write.

  • General Liability

    The third-party coverage every contract, landlord and city licence asks you to carry.

  • Workers' Compensation

    Required in Pennsylvania once you have employees, and priced on payroll and class code.

  • Commercial Insurance

    General liability, property, commercial auto and BOPs, sized to how the business actually runs.

Let's get you a real number.

Tell us what you're insuring and David will shop it across our carriers. No obligation, and no pressure if your current policy turns out to be the better deal.

Independent agency / 10 carriers on file