When residential or commercial properties fall vacant, building owners and landlords have to deal with loss of income during tenant turnover as well as ongoing expenses associated with general maintenance and real estate taxes.

When this occurs, property owners must immediately review their existing property insurance policy, as exclusions exist, especially when commercial and residential buildings, residential dwellings, mobile homes and townhouses are vacant or unoccupied for a certain period of time.

Vacant properties are prime targets for trespassers, arsonists and criminals. Additional liability risks include damage from water, fire and extreme weather, as well as health and safety issues faced by bona fide visitors such as contractors and estate agents while on the premises. For example, if a pipe bursts in a vacant building and no one is there to catch it early, the water damage can be extensive and costly.

Vacant Commercial Insurance extends coverage to both vacant land and buildings and protects your investment against claims and lawsuits resulting from loss events that cause damage to property or third-party bodily injury and property damage.

This policy should provide general liability as well as property coverage. It is particularly useful for property owners, real estate investors, and small business operators who are between tenants or working on renovations. Coverage can help manage risks from vandalism, structural damage, and potential liabilities involving anyone lawfully on the property.

Depending on the structure and location, additional protections such as Vacant Property Vandalism Insurance or Vacant Commercial Buildings Theft Insurance may be advisable. These types of endorsements help reduce exposure to property crime and theft-related losses, especially in urban or high-risk areas.

For landlords of residential units, Vacant Dwellings Insurance can offer more specialized coverage for unoccupied rental homes or condos. Likewise, commercial property owners may consider Vacant Building General Liability Insurance to cover common liability exposures during vacancy periods.