A tenant moved out. Is your building still covered?
Most landlords have no idea their coverage shrinks the moment a space sits empty. It's buried in the policy, it's called the vacancy clause, and it catches people at the worst time.
The 60-day clock
Every policy is a little different, but typically commercial property policies cut coverage once a building is vacant past 60 straight days. After that:
No payment at all for vandalism, theft, glass breakage, water damage, or sprinkler leaks. The exact losses an empty building attracts.
Every other claim reduced by 15%. Even a fire pays less.
So a pipe bursts in a unit that's been empty two months, floods the floor, and you're covered for none of it.
What "vacant" means
For a landlord, no tenant usually means vacant. It's stricter than it sounds, and the clock doesn't care why the space is empty. Between tenants counts.
What to do about it
Tell your broker the day a tenant gives notice. They can switch you over the to vacant property policy and switch you back when you have a new tenant. Some carriers allow for short/medium term vacancy endorsements.
Add a vacancy permit endorsement. It keeps coverage in force through the gap for a set period.
For a longer vacancy or a building mid-renovation, get a vacant building policy. Different animal, usually placed with a specialty carrier. It’s likely more expensive.
While it sits empty
Secure it. Lock up, kill easy access, keep it looking occupied.
Winterize or keep heat on so pipes don't freeze and burst.
Check on it, or have someone check, on a schedule.
Keep up basic maintenance. A neglected empty building is a magnet for exactly the losses your policy just stopped covering.