Vacant Building

What Does Vacant Building Mean?

A vacant building is one that has been abandoned, unoccupied, or empty for a certain period. In the context of insurance, vacancy is highly relevant for property coverage. This is because many property insurance policies include exclusions if a building remains vacant for an extended period.

Insuranceopedia Explains Vacant Building

Property insurance companies often exclude coverage for vacant buildings because the risk of loss increases significantly when a building is unoccupied. For example, vacant buildings can become targets for vandalism, leading to broken windows or graffiti. Water damage can also go unnoticed and worsen in vacant buildings, and whether homeowners insurance covers water damage often comes down to how quickly the leak is found, which is harder to do in an empty house. As a result, many property insurers discontinue coverage if a building remains vacant for 30 or 60 days. Vacancy clauses also vary between carriers, so it’s worth reading the fine print when comparing the best homeowners insurance companies.

Owners of homes that sit empty for long stretches, like vacation properties or second homes, often need a policy built for that situation, such as vacation home insurance. Commercial property owners who have tenants moving in and out can run into the same vacancy gaps, which is why commercial landlord insurance policies handle empty units on different terms than a standard property policy. The way vacancy is treated can also differ across different types of commercial property insurance, so owners should check the specific form before assuming a vacant unit is covered.