Why vacant buildings need their own policy
Once a building is empty, the risk changes. Nobody notices a leak, a break-in or a furnace failure for days. Standard home and commercial policies respond by restricting or removing cover once the building has been vacant for the period their wording sets. Check the expiring policy's vacancy clause first; that tells you the date the client needs this cover.
Program highlights
| Coverage | Residential | Commercial |
|---|---|---|
| Building (Coverage A) | Up to $3,000,000 | Up to $2,000,000 |
| Other structures (Coverage B) | 20% of Coverage A | Up to $300,000 |
| Contents (Coverage C) | Personal property, 20% of Coverage A | Business personal property up to $100,000 |
| Liability | Personal liability up to $2,000,000 | Premises liability up to $2,000,000 |
| Forms | Named perils and multi-peril | Named perils and multi-peril |
Limits shown are program maximums from the current program highlights. Every risk is subject to underwriting, and terms are set on the file.
Features brokers ask about
- Vandalism and malicious mischief cover available.
- Additional insureds added at no cost.
- Policy terms of 3, 6 or 12 months.
- Risks with more than two mortgages considered.
- Earthquake cover available within the program guidelines.
- Sewer backup sublimit available.
- Cover for buildings undergoing cosmetic renovations while vacant.
The usual vacancy situations
| Situation | What to watch |
|---|---|
| Home listed for sale | The vacancy clause date on the expiring policy, and who checks the property. |
| Estate property | The executor's authority to insure, and how long probate will take. |
| Rental between tenants | Expected vacancy length and utilities left on. |
| Cosmetic renovation | Scope of work. Major renovations go on builders renovation. |
| Commercial building between leases | Security, sprinklers and heat. |
Vacant, then renovated, then occupied
If the owner starts major work, move the risk to builders renovation. If they knock it down and build, it becomes course of construction. The same program family handles each stage.
