Vacant Property Insurance (Quotes, Cost & Coverage)

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Frequently Asked Questions About
Commercial General Liability Insurance

How much does commercial insurance cost?

Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.

What kind of business insurance do I need?

Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.

What is a Certificate of Insurance?

A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.

Is business insurance tax deductible?

Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.

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Vacant Property Insurance

Vacant Property Insurance

Vacant Property Insurance. When a commercial property becomes vacant, the owners often wrongly assume their existing insurance policy will provide coverage during the period of vacancy. Since this is not usually the case, specific vacant property coverage is important for business owners to consider.

This vacant property insurance offers broad package, or monoline, property and general liability coverage for vacant, and certain partially vacant, commercial properties, condo units, or rental space - with or without renovation work.

Vacant property insurance protects your unoccupied buildings from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.

How Is Vacant Property Different From Commercial Property Insurance?

Since there are no operations there, vacant commercial properties tend to pose more risks than occupied ones. Acts of liability and fire, for instance, are potentially serious issues with a unoccupied property. Intruders might get hurt on broken floor boards or old fencing, and file a claim or sue. Some typical property insurance policies won't cover these types of risks on a vacant property, but vacant property insurance is an option for you.

What Does Unoccupied Commercial Property Insurance Cover?

There are several increased risks associated with empty business properties. These include:

Liability: Optional liability provides coverage if you're found legally responsible for an accident on the vacant premises, that causes injury to someone or causes property damage.

Burst Pipes: This is a prime hazard for unoccupied properties due to the fact they are often left unheated. The water damage to vacant buildings is one of the reasons for which insurers insist on different coverage for unoccupied properties.

Flood and Fire: These hazards are considered by insurers to be more serious if they happen in unoccupied properties, as they stand more chance of getting out of control - which means greater levels of damage, and increased expense.

Squatters: Likewise, squatting is a serious problem for commercial landlords - not only because of the hassle and expense of removing uninvited occupants, but also due to the damage they may cause. People who enter a commercial property illegally and by force are unlikely to treat it with respect.

All these risks and hazards will be covered by a good vacant property insurance policy - which gives landlords the peace of mind to get on with the other aspects of their business.

What Options Are Offered On A Vacant Building Policy?

Named Peril Coverage - This covers "perils" (things like fire, explosion, lightning, wind and hail) that are specifically named in your vacant property insurance policy, subject to exclusions and conditions.

Agreed Loss Settlement (Total Loss) - If your unoccupied property is destroyed by a covered loss (a total loss situation), you receive the full amount of insurance you purchased on your vacant property insurance policy, minus any applicable deductible.

Actual Cash Value (Partial Loss) - In the event of a covered loss (a partial loss or partial damage), this covers the cost to replace or repair your damaged building, with a deduction for depreciation, which reflects the age and condition of your building, minus any applicable deductible.

Landlord Flexibility - If you rent your property, and it goes vacant between tenants, you can cover it with a unoccupied property policy. When someone moves in, it can easily be endorsed to a landlord or owner-occupied policy, all without having to cancel the policy or write a new one. (not available in all states).

Short Term Coverage - You don't have to insure your vacant commercial property for the usual 12 months required by a normal policy. Most firms allow you to arrange cover for three, six, nine or 12 months, with the option to extend if necessary. So, you might take out a three-month policy to cover your property while it is up for sale. But if the sale takes longer than expected, you could simply extend the policy as required.

Full 12 Month Policy - You can get flexible payment plans and a pro-rated cancellation, subject to minimum earned premium. This comes in handy in case you move back into the commercial property, sell it, find a tenant, or need to cancel for some other reason before your year is up.

Special Coverage - If your commercial property is a historical building, has a thatched roof or any other less common features, you may need special insurance to protect it while it's unoccupied.

Requirements For Unoccupied Property Insurance

Before an insurer will offer you policy, they'll want to know what condition your property is in. If the building is in a poor state of repair with broken windows and boarded-up entrances, they're unlikely to insure it. It can also be a good idea to remove any valuables that you have at the property and keep them somewhere safer.

Some insurers may require you to take steps to protect your commercial property while you're away, such as having approved locks on your doors and windows, a working burglar alarm and timer-controlled heating to ensure that your pipes don't burst in cold weather. You may also need to switch off all utilities and drain the water system.

Vacant Property Insurance Cost

As with all insurance policies, there will be a number of factors that the insurer will take into consideration when calculating your premiums. The importance of each factor will differ between insurers meaning that premiums can vary, so it's important to shop around for a policy that suits your needs.

Typical factors include the value of the property, how long you wish to be insured for, why the property is unoccupied, the security that you have in place and your address. The security of your property will have a huge effect on your premium, so make sure that every entry point to your commercial property is secure. If you have an alarm, ensure that it's activated when you're away or it could invalidate your insurance.

Exclusions On Vacant Property Insurance

Every policy will have exclusions that apply to it, but they'll vary from insurer to insurer so always read your terms and conditions. Examples of typical exclusions to look out for include:

  • Loss or damage as a result of unforced entry e.g. when windows or doors are left open or unlocked.
  • Damage caused by major works, for example extensions and structural repairs.
  • Damage caused by contractors (contractors should have their own insurance).

Vacant Property Insurance

A vacant property faces an increased risk when it comes to potential damage. Whether your property will be unoccupied for just a few days or for several months, make sure to update your insurance policy and follow a few simple steps to protect your building(s).

Small Business Economic Data & Insurance Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. Maybe you want to contribute to the economic growth of your community. Whatever the reason is, if you're thinking about starting a small business, it's important to understand pertinent information relating to small businesses in the United States; namely economic information and insurance regulations. After all, if you want your small business to succeed, you have to understand the economic trends organizations of a similar size in your area.

Likewise, you want to ensure that your small business is well protected with the right business insurance and that you are in compliance with the rules and regulations that pertain to commercial insurance in your region.

Small Business Information

Read up on economic statistics and insurance information that relates to small business owners in the United States.

Small Business Economic Data In The United States

Here's a look at some information that was compiled by the Small Business Association (SBA) regarding the economic data that pertains to small businesses in the United States:

  • In 2015, small businesses in the United States employed an estimated 58.9 million American workers, or 47.5 percent of the nation's private workforce.
  • Largest shares = fewer than 100 employees. The small businesses that employed 100 people or less had the largest share of employment amount small businesses.
  • Employment increased by nearly 2 percent. In 2018, employment amongst small businesses increased by 1.8 percent, which is an increase of 1 percent from the prior year.
  • Increase in proprietors. In 2016, the number of small business proprietors increased by 2.3 percent.
  • In 2015, small businesses were responsible for creating 1.9 million net jobs. Organizations that employed 20 people or less had the largest gains, as they added an estimated 1.1 million net jobs.
  • There were 5.7 million loans that were value less than $100,000 issued by lenders in the United States in 2016. These loans were issued under the Community Reinvestment Act.
  • Small business owners that were self-employed at the incorporated businesses that they owned reported a median income of $50,347 in 2016.
  • Small business owners that were self-employed at the unincorporated businesses that they owned reported a median income of $23,060 in 2016.
Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage. The SBA recommends the following insurance plans for small business owners:

  • Commercial Property Insurance: In the case of an unplanned disaster - fire, flood, vandalism, theft, etc. - this type of coverage will help you avoid paying for the damage out of your own pocket. Even if you rent the property, you should still carry commercial property insurance.
  • Commercial Liability Insurance: In the event that a legal situation arises - a negligence lawsuit, for example - commercial liability coverage will provide financial protection. It will cover the cost of legal defense fees, court fees, and even moneys that may be awarded.
  • Commercial Auto Insurance: If you operate a vehicle for any activities that are related to your business - transporting and/or delivering goods, or meeting with clients - commercial auto insurance is legally required for businesses of all sizes, including small businesses.

Additional Resources For Commercial Property Insurance

Read up on small business commercial property insurance, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.


Commercial Real Estate Insurance

The main goal of any commercial property insurance program is to protect the insured's real and business personal property. Buildings and their contents property usually represents a significant portion of its total assets, regardless of the size of the business. A commercial property program can provide the coverage you need if a loss should occur.

The ISO Commercial Property Building and Personal Property Coverage Form is an insurance industry standard that provides this needed coverage. As a result, it should always be reviewed and used as a benchmark for comparison when evaluating any commercial property coverage form.

This policy treats business personal property as more than just the contents of a building. When there is a limit of insurance on the declarations, property can be covered if inside the building or structure or within 100 feet of the building or premises and either in the open, or even in or on a vehicle.

There are many endorsements available to tailor the ISO Commercial Property Coverage Forms. Some are mandatory for all policies while others are mandatory for specific classifications and types of business. Others are optional and permit a standard form to be customized to meet a specific risk's coverage needs. Endorsements broaden, restrict, delete, modify, or add coverage.

These policies can provide the following additional coverages for small specific limits of insurance: debris removal, preservation of property, fire department service charge, pollutant clean up and removal, increased cost of construction and electronic data.



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Vacant Property Insurance
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Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Fireman's, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, LLoyd's of London, Markel, MSA, Nationwide, Penn America, Philadelphia, Prime, Progressive, Scottsdale, The Hartford, Travelers, USLI, Utica First, Western World, Zurich & others.

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