Start with the purpose of the coverage
Standard occupied-property policies may not address prolonged vacancy in the same way as a policy written for a vacant building or lot. Depending on the insurer and policy, a vacant-property program may address eligible property and premises liability exposures involving fire, vandalism, theft, water damage, wind, hail, or other causes of loss. Coverage, limits, exclusions, inspections, and eligibility vary by property, location, condition, occupancy plans, and insurer.
Prevent frequent losses
Connect this decision to the insured operation, credible loss scenarios, current information, policy wording, and requested protection.
Reduce severity when an incident occurs
Connect this decision to the insured operation, credible loss scenarios, current information, policy wording, and requested protection.
Document consistent management oversight
Connect this decision to the insured operation, credible loss scenarios, current information, policy wording, and requested protection.
What the policy may help address
Vacant commercial buildings, residential homes, rental properties, and buildings awaiting sale or renovation
Confirm covered causes, insured parties, locations, limits, deductibles, conditions, and exclusions in the actual proposal and issued policy.
Undeveloped land, commercial land, residential lots, and premises-liability exposure
Confirm covered causes, insured parties, locations, limits, deductibles, conditions, and exclusions in the actual proposal and issued policy.
Eligible property, vandalism, theft, fire, water, wind, hail, and ordinance or law only as provided by the policy
Confirm covered causes, insured parties, locations, limits, deductibles, conditions, and exclusions in the actual proposal and issued policy.
Details to examine for this decision
- Length and reason for vacancy, intended future use, property condition, inspections, and renovation or construction transition plans
- Building value, land value, square footage, year built, construction, utilities, security, fencing, maintenance, and catastrophe exposure
- Ownership entity, mortgagee or loss-payee requirements, prior losses, and whether flood, wind, water, ordinance or law, or other protection is actually provided
Information to prepare
A complete submission helps distinguish the account and reduces avoidable follow-up. Prepare current records rather than relying on estimates from a prior policy period.
- Property address or lot location, ownership entity, property type, current occupancy, and date vacancy began
- Reason for vacancy, intended future use, building and land values, square footage, year built, and construction type
- Renovation plans, utilities status, security or fencing, current insurance, requested effective date, and prior losses
Questions the review should answer
How does the program address length and reason for vacancy, intended future use, property condition, inspections, and renovation or construction transition plans?
Document the answer in the proposal, applicable forms, endorsements, schedules, or written underwriting confirmation. Do not rely only on a certificate or marketing summary.
How does the program address building value, land value, square footage, year built, construction, utilities, security, fencing, maintenance, and catastrophe exposure?
Document the answer in the proposal, applicable forms, endorsements, schedules, or written underwriting confirmation. Do not rely only on a certificate or marketing summary.
How does the program address ownership entity, mortgagee or loss-payee requirements, prior losses, and whether flood, wind, water, ordinance or law, or other protection is actually provided?
Document the answer in the proposal, applicable forms, endorsements, schedules, or written underwriting confirmation. Do not rely only on a certificate or marketing summary.
Frequently asked questions
What should a business prepare for a Vacant Building and Lot Coverage loss-control priorities review?
Useful starting information includes property address or lot location, ownership entity, property type, current occupancy, and date vacancy began, reason for vacancy, intended future use, building and land values, square footage, year built, and construction type, renovation plans, utilities status, security or fencing, current insurance, requested effective date, and prior losses. The specialist may request additional details based on the operation and available insurance markets.
Why should Vacant Building and Lot Coverage be reviewed separately from other policies?
Standard occupied-property policies may not address prolonged vacancy in the same way as a policy written for a vacant building or lot. Depending on the insurer and policy, a vacant-property program may address eligible property and premises liability exposures involving fire, vandalism, theft, water damage, wind, hail, or other causes of loss. Coverage, limits, exclusions, inspections, and eligibility vary by property, location, condition, occupancy plans, and insurer. The policy should also be coordinated with related property, liability, vehicle, people, contract, and continuity exposures.
Coverage descriptions are general and do not amend a policy. Eligibility, availability, limits, deductibles, exclusions, definitions, and terms vary by risk and insurance market. Actual policy documents control.