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Does My Vacant Property Have The Right Insurance?

If my property is vacant, does that affect my insurance?

The news is filled with stories about the unfortunate reality of vacant properties. Homes and businesses alike are standing empty. Many owners may have purchased homeowners insurance / dwelling fire insurance or business property insurance policies while the homes or businesses were occupied and now that there is a vacancy may have incorrectly assumed they are secure with that insurance coverage in place.

Vacant or unoccupied properties presents special challenges. The premium charged for occupied property does not take into consideration the increased exposures and risks of vacant and/or unoccupied property. The property insurance provided by most policies is limited, and may not respond at all if the property has been vacant for more than 60 consecutive days (prior to a loss)!

Many if not most insurance companies will cancel coverage immediately if they become aware of the vacancy. Even if the policy is not canceled, there may be major problems in the event of a claim. The occupancy status is considered essential (a material fact) to the insurance company. When the use and/or occupancy of a property changes many insurance companies may no longer want to insure the property.


The following coverage limitations may apply if the property is deemed to meet the definition of vacant or unoccupied in your insurance policy.

  • Insurance is suspended on glass breakage
  • Vandalism and theft is not covered
  • There is no coverage for damages caused by freezing plumbing, heating, air conditioning, or automatic fire protection sprinkler systems or of a household appliance if the property has insufficient heat and/or the water system has not been shut off or drained.
  • On a commercial building, if there is 31% or less occupancy, in addition to all of the above, ALL claims payments will be reduced by 15%….(unless a vacancy permit/endorsement is attached to the policy)

Depending on the policy and insurance company involved, the entire policy may be void in the event of a vacancy or un-occupancy. There are, however, solutions. We pride ourselves on finding solutions for our clients.   There are insurance companies that will write Vacant Property Insurance policies.

We must, however, be first made aware of the vacancy or occupancy.  Please contact us if your property undergoes an occupancy change and we will help guide you through the necessary steps to obtain proper coverage.

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

Jerry Nicklow, Huff Insurance, Vacant Property Insurance

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