Understand the coverage limits of your commercial property insurance.

The vacancy clause in your commercial property insurance policy not only specifies when your building is declared unoccupied, but it also specifies the limitations of your property insurance during a vacancy. A standard policy, for example, will discontinue coverage for water damage, theft, sprinkler leakage, and vandalism after 60 days of your facility being vacant. In addition, if a loss occurs when a building is vacant, your reward may be reduced by up to 15%. Recognizing these commercial property insurance limitations will help you plan for the necessary insurance during a vacancy.

Is your building unoccupied? You may require vacant building insurance.

If you own a business facility, it is termed unoccupied when 70% of the total square footage is not being used by you or your tenants. You would therefore require vacant building insurance to make your property fully insured.

What is the scope of this policy?

Fire, wind, water damage, sprinkler leakage, theft, and vandalism are some of the identified risks that may be covered by vacant building insurance. If you’re looking for specific coverage for a certain risk, coverage choices for your individual risk factors may be available. It may also give liability coverage in the event of an accident occurring on the property while it is vacant for which you may be held liable.

Whether your vacancy is scheduled or unplanned, it’s critical that you have vacant building insurance in place. Please contact us to learn more about this specialist coverage.