Hidden in plain sight in nearly every property insurance policy is a provision that limits or removes coverage if a building is vacant. Some policies remove coverage for certain perils, such as vandalism, sprinkler leakage, water damage, glass breakage, and theft or attempted theft (CP0010). To address this vacancy provision in the policy form, you need vacant building coverage.
A vacant building policy removes the vacancy provision or provides a sub-limit of coverage for vandalism and theft or attempted theft. Vacant building policies are often written on a short-term basis such as 3 or 6 months, although annual coverage is available. Vacant property coverage can also be used to cover a home or commercial building that is undergoing non-structural renovation. A builders risk policy may also be issued to cover the value of the renovation work and theft of building materials.
Vacant property insurance policies often require a higher than typical deductible, to prevent small claims from being filed. The policy may also contain exclusions for “cosmetic” damage to a metal roof caused by hail. Other endorsements commonly found in a property insurance policy, such as special form cause of loss and replacement cost valuation, are available for buildings that qualify.
Owners of residential and commercial property should understand the vacancy provisions of their insurance policies. Any vacancy should be reported to the agent or insurance company immediately so that proper coverage can be secured.
Vacant building coverage is affordable, especially for buildings with superior construction, security systems, and in areas with good fire departments. At Safeguard Insurance, we have access to several provides of vacant building coverage including USLI and Berkshire Hathaway Homestates. No matter what size of building or length of vacancy, we can provide you with an affordable quote. Contact our office today at 702-638-0022 to discuss your vacant property insurance needs.
Safeguard Insurance is licensed to provide vacant building coverage in Nevada, Utah, Arizona, Idaho, California, New Mexico, Washington, and Oregon.