Risk & Underwriting
Vacant (Dwelling/Land)
Definition
A vacant property is a dwelling or structure that is unoccupied and devoid of furnishings or personal property sufficient for normal habitation. Most insurance carriers define a property as vacant if it has been unoccupied for a specified period — commonly 30 to 60 consecutive days. Vacancy significantly increases risk (vandalism, undetected damage, liability), and most standard homeowners and dwelling fire policies include a vacancy clause that limits or eliminates coverage after the vacancy threshold is met. Insuring a vacant dwelling or vacant land typically requires a specialized vacancy permit endorsement or a standalone vacant property policy.
In Zach’s Words
“An empty property is a magnet for problems — vandalism, squatters, burst pipes that go unnoticed for weeks. Insurance companies know this, which is why most policies have a vacancy clause. If your home or building has been unoccupied for 30 to 60 days (depending on the carrier), your coverage can be reduced or voided entirely. That's a nasty surprise if you're between tenants, renovating, or trying to sell. If you know a property is going to be vacant, you need to let us know so we can get a vacancy permit or a standalone vacant property policy in place. Same goes for vacant land — if you own an empty lot, you still have liability exposure if someone gets hurt on it. Don't leave yourself uncovered.”
— Zach Nadler, CIO