Every landlord has gaps between tenants — cleaning, repairs, renovations and finding the next renter. But many owners don't realize that a vacancy can reduce or eliminate coverage for certain losses.
The 60-day rule
Many dwelling policies exclude vandalism, malicious mischief and glass breakage once the property has been vacant for more than 60 consecutive days. Commercial property policies typically go further: after 60 days of vacancy, they exclude vandalism, sprinkler leakage, glass breakage, water damage and theft, and reduce payment on other losses.
Vacant versus unoccupied
Policies define vacancy differently. Generally, a vacant property is empty of people and the furnishings needed to live there. An unoccupied property still contains furnishings but no one is living there. The distinction can affect coverage — know your policy's definition.
Renovations
Major renovations can leave a property vacant for months. Some policies have special provisions for buildings under renovation; others don't. Tell your agent before a long renovation.
Options for longer vacancies
- A vacancy permit endorsement that restores coverage for a set period.
- A separate vacant dwelling policy.
Arrange coverage before the 60-day mark.
Protect vacant properties
- Visit at least weekly and document each visit.
- Keep heat on and winterize plumbing as needed.
- Use timers on lights.
- Keep the lawn mowed and mail collected.
- Secure doors and windows.
Vacant homes attract trouble. Make sure your coverage doesn't vanish when your tenant does.
This material is for general information only. Coverage depends on the actual policy language, and availability varies by carrier.