A tenant moved out. Is your building still covered?

The 60-day clock

Every policy is 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. Depending on the insurance carrier, you might be able to add a short/medium term endorsement to cover the vacancy.

• 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.

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.