Is your Commercial Building considered "Vacant?"

14 June 2010, Comments: 0

            If so, were you aware you are now VERY LIMITED in coverage? 

Below is language from a standard commercial property policy.  Be sure to look at yours, or contact our office for your carrier’s exact wording.


We will not pay for any loss or damage caused by any of the following, even if they are Covered Causes of Loss, if the building where loss or damage occurs has been “vacant” for more than 60 consecutive days before that loss or damage occurs:

  1. Vandalism;
  2. Sprinkler Leakage, unless you have protected they system against freezing;
  3. Building glass breakage;
  4. Discharge or leakage of water;
  5. “Theft”; or
  6. Attempted “theft”.

With respect to Covered Causes of Loss other than those listed in Paragraphs (1) through (6) above, we will reduce the amount we would otherwise pay for the loss or damage by 15%….  (FIRE)!

 The contracts will also list their definition of Vacant.  In our example policy, this is how it reads:

“Vacant” means the following:

  1. When this policy is issued to a tenant, and with respect to that tenant’s interest in Covered Property, building means the unit or suite rented or leased to the tenant.  Such building is vacant when it does not contain enough business personal property to conduct customary operations.
  2. When this policy is issued to the owner or general lessee of a building, building means the entire building.  Such building is vacant unless at least 31% of its total square footage is:
    1. Rented to a lessee or sub-lessee and used by the lessee or sub-lessee to conduct its customary operations; or
    2. Used by the building owner to conduct customary operations.

**The good news is there are special policies that include these coverages .  They can be written for as little as 3 months and can be renewed as long as you need them. 

Be sure to notify us immediately if your building is considered “Vacant” so we can get you the coverage you need!

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