Vacant Building Insurance: What It Covers and Who Needs It

Just because a building lies dormant doesn’t mean it doesn’t face certain risks. Whether it’s theft, water damage, or fire, there’s always the chance an unoccupied building will need insurance coverage.

Vacant Building Insurance is designed to give these buildings protection from the threats they face. This article will outline those dangers while explaining what Vacant Building Insurance is, who needs it, and what insurance brokers need to offer in a policy to win clients. 

What Is Vacant Building Insurance?

Vacant Building Insurance (also called Vacant Home, Vacant Property, and Unoccupied Home Insurance) is an insurance policy that provides coverage for an empty building that isn’t under renovation or construction.

Oftentimes, Vacant Building Insurance is bought for short periods of time, usually between three months and a year. During that time, it protects your client’s property investments by offering property coverage and sometimes General Liability coverage until the building gets back into use, either through construction, renovation, or occupancy. 

Who Needs Vacant Building Insurance?

Vacant Building Insurance is necessary for any client who has a building that’s temporarily vacant — even if it won’t be that way for long. Some people mistakenly think that a Builder’s Risk policy will be good enough as long as renovations or construction are happening soon. However, many Builder’s Risk policies only cover vacant buildings for a short period of time.

For instance, Distinguished’s Builder’s Risk Insurance will cover vacant properties for up to 45 days at the beginning of a project if construction has been delayed. After that, if the building remains vacant, it could result in the denial of a claim.

Other examples of buildings that would need Vacant Building Insurance are:

  • Commercial spaces that are between tenants.
  • Homes that are being staged for selling.
  • Larger condominiums that are waiting on renovations.
  • Office buildings that are waiting to be sold.
  • Restaurants.

What Does Vacant Building Insurance Cover?

Vacant Building Insurance is built to cover basic GL and property exposures an empty building is likely to face. For instance, GL coverage would help your client in instances where a security guard or property manager was hurt on the premises. Property coverage is there for any damages that occur to the building itself, most commonly water damage from burst pipes or leaky sprinklers. 

The most common exposures Vacant Building Insurance covers include:

  • Theft
  • Vandalism
  • Water damage from burst pipes and sprinklers

What Clients Look For in a Vacant Building Policy

When selling Vacant Building Insurance, it’s important to know what policy details win contracts. Here’s what works in this particular niche of the industry.

Flexible Terms

Clients need flexible terms because it can be hard to tell how long the building will end up being vacant. Maybe your clients are uncertain when the city will get back to them or when the new tenants will sign or when the contractors will be ready to go. They need a policy that can be adjusted based on their needs.

The need for flexibility is why Distinguished’s Vacant Building Insurance allows for 3, 6, 9, and 12-month terms. We also offer extensions if your client’s plans are behind schedule. This way, your client is always covered, no matter the situation they find themselves in. 

Low Minimum Premiums

Costs are always a big factor with clients. They want to know that you’re getting them the best price for the coverage they need. Whether you’re looking for Vacant Building Insurance on a low-risk home, office building, or condominium, we can help you get a quote your client will appreciate.

Quick Quotes

Many clients come to brokers looking for insurance that’ll start right away. However, even the most dedicated brokers would be hard-pressed to deliver by those exacting deadlines. 

One way we help speed things up is by offering our Vacant Building Insurance applications 100% online. And nearly 70% of all applications need no review by an underwriter, so you get a bindable quote immediately after submitting. 

Sign Up with Distinguished

Distinguished’s Vacant Building Insurance is a flexible, affordable, and convenient insurance option for brokers and clients alike.

If you’re interested in getting a quote for your client, start by signing up your brokerage, then simply access our online portal to submit.

To learn more about our Vacant Building Insurance, read through our FAQs or take a look at the links below for more information.

Distinguished’s Vacant Building Insurance Policy FAQs

What term limits does Distinguished offer?

Distinguished offers terms of 3, 6, 9, and 12 months.

Which states do you sell in?

Our Vacant Buildings Policy is available nationwide except for Delaware, Florida, Hawaii, Kentucky, and Suffolk County, NY.

What is your turnaround time for quotes?

Almost all of our quotes are instantaneous through our online system. If an underwriter needs to look at the account, then the turnaround time will be between 24 and 48 hours.

What is your maximum TIV? 

Our program has a maximum TIV of $5 million. However, we do have the option to secure higher limits depending on the risk and construction type.

Do you value buildings at Replacement Cost (RC) or Actual Cost Value (ACV)?

Both RC and ACV are available. 

Do you cover water damage and mold?

Yes, we cover water damage. In addition, we cover mold, rot, and fungus up to $15,000. 

About Distinguished Programs

Distinguished Programs is a leading national insurance Program Manager providing specialized insurance programs to brokers and agents with specific expertise in Real Estate, Community Associations, Hotels, and Restaurants. Property and liability products are distributed through a national network of agents and brokers. Serving the same core markets and partnering with the most stable and reputable carriers, Distinguished Programs’ high-limit umbrella programs remain the clear choice in its areas of specialty for superior coverage, competitive pricing, and attentive service. Through thoughtful innovation, stemming back to 1995, Distinguished Programs fosters growth and opportunities for its brokers, carriers, and employees.

View a full list of our programs and submit business with Distinguished.

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