Vacant Building Insurance

While many insurance companies will not insure, or make it difficult to insure, unoccupied buildings or homes because of the increased risk associated with vacancy, we do our best to prioritize the safety and stability of our clients’ properties.

What Makes Building Vacant?

This is not as straightforward as it sounds. The dictionary definition and the classification by an insurance company as to what a vacant structure can vary greatly. There are some very important gray areas that the experts at VacantBuildingInsurance.com can explain to you.

• Commercial and rental properties that are less than 35% occupied generally are not covered by a standard policy.
• Seasonal use dwellings such as vacation homes and winter residences are usually treated as vacant properties by insurers.
• Property undergoing renovation are classified as vacant, you might want to ask about obtaining a builder’s risk policy to cover you during renovations.

Vacant Property Risks

Vacant properties, either commercial or residential, pose a substantially higher risk than occupied buildings, generally due to lack of security and supervision.

Without occupancy, buildings remain unsupervised for extended periods and therefore increasing the opportunities for theft and vandalism. Additionally, should the infrastructure of the building fail (bursting pipes, gas leaks, etc), the malfunction will not be noticed for a significantly longer period and the impacts will be much more catastrophic. Building infrastructure could be affected by break-ins, drastic weather, or overall negligence.

Vacant Building Insurance Coverage

Many standard commercial and residential insurance policies do not include extensive coverage for vacant buildings; coverage must be purchased as an additional policy or as an endorsement to your current insurance policy.
Depending on the conditions of your building’s vacancy, eligibility, coverage limits, and premiums can vary greatly in terms of restrictions and costs.

Common factors affecting coverage limits and policy costs include:

Through years of experience, the agents at Farmer Brown can guide you through the obstacles in obtaining the proper coverage for your vacant property and assure that you are properly covered at a reasonable price.

• Vandalism.
• Damage to infrastructure.
• Flooding.
• Break-ins.

Vacant property insurance policies offer extremely different coverage levels; do not hesitate to seek out the right information and gather all the facts before making your vacant building insurance decisions.

Frequently Ask Questions