What's the Best Commercial Property Insurance for Vacant Buildings?

Extended periods of time without occupants can increase the risk of fire, vandalism, and other dangers for commercial properties. Because of this, many carriers will insert terms that restrict the amount of commercial building insurance coverage after a specific amount of time, usually 60 days, although it could be longer or shorter.

One of the things you could do if you anticipate that your property won't be occupied for an extended length of time is to confirm with your insurer how their policies define vacancy and find out how a prolonged vacancy might affect your coverage. You could also add an endorsement for vacant building coverage to your current commercial building insurance policy if your building is deemed unoccupied and loses coverage. A vacant building may have higher insurance premiums, and your insurer could have extra requirements (such as an upgraded sprinkler or security system) to account for the elevated hazards.

Some insurers offer standalone coverage for vacant properties if you cannot readily secure coverage from your typical commercial property insurance provider. One of the greatest is US Assure, which focuses on property and construction insurance. With the exception of Alaska and Hawaii, all states are eligible for US Assure's unoccupied property insurance, which provides up to $5 million in coverage for commercial properties.