Vacant property and builders risk insurance

Many home, landlord, and commercial property policies limit or remove coverage for certain causes of loss once a building has been vacant for a period set in the policy. Read the vacancy terms in your policy, and tell your insurance company when a building becomes empty.

Policies define these words differently. In general, a vacant building has no one living or working in it and little or no furniture or contents, while an unoccupied building still has contents but no one is there for a time. Your policy wording controls how it applies.

Builders risk covers a building while it is being built or renovated, along with materials and supplies on site, depending on the policy. It can also include materials in transit or stored off site. Theft, fire, wind, and vandalism are common concerns.

It depends on the contract. Sometimes the owner buys it, and sometimes the contractor does. Check your construction contract and talk with your contractor so the project is not left uninsured or insured twice.

Vacant and builders risk policies are meant for a period of time. Once the building is finished, rented, or occupied, it usually needs to move to a homeowners, landlord, or commercial property policy. We can help you plan that switch.

Some vacant property policies include liability, and some cover the building only. If someone is hurt on an empty property, you could be held responsible, so ask us about liability options for the property.