Vacant building insurance in NYC

Why regular policies fall short

The widely used ISO Building and Personal Property Coverage Form contains a vacancy condition. As IRMI explains, when a policy is issued to the building owner, the building is considered vacant unless at least 31% of its total square footage is rented and used by tenants or used by the owner for its own operations. If the building has been vacant for more than 60 consecutive days before a loss, that form excludes vandalism, sprinkler leakage (unless the system is protected against freezing), building glass breakage, water damage, theft and attempted theft, and reduces payment for other covered losses by 15 percent. Buildings under construction or renovation are not considered vacant under that form. (Source: IRMI.) Your own policy's wording is what counts, so we always read it.

When you need vacant building coverage

• You bought a building and are emptying it before a renovation.
• An office or retail building has lost its main tenant.
• A building is tied up in an estate, a sale or a dispute.
• Work is paused, so the building is no longer "under renovation."

What insurers ask about a vacant building

Expect questions on how the building is secured (boarded or sealed openings, locks, alarms), whether utilities are on or off and the heat is maintained, how often someone inspects it, and what the plans are. Liability coverage still matters while a building is empty: trespassers, the sidewalk and falling debris remain the owner's concern.

Once work actually starts, the policy usually moves to builders risk.