Write it Right: Vacant Properties
Finding the Right Coverage for Vacant Properties
A vacant property doesn’t necessarily look like an abandoned building with boarded-up windows. It could be a home waiting to sell. A rental dwelling between tenants. A seasonal property sitting unused for several months. A short-term rental during an extended gap in bookings. Or a commercial building waiting for its next tenant or owner.
Whatever the reason, vacancy can create unique exposures—and potentially change how an existing insurance policy responds. Identifying a vacancy early is important. It’s also an opportunity to help clients find coverage designed for the way their property is actually being used.
Concorde can help you explore options for you to write a home or building for what the occupancy is today, not for what it will be, to ensure that the coverage reflects your clients needs.
Why Does Vacancy Matter?
When a property is occupied, there is usually someone around to notice when something goes wrong. A leaking pipe can be discovered quickly. Signs of a break-in may be noticed immediately. Heating and other building systems are more likely to be monitored.
When no one is there, a relatively small problem can become a much larger loss. Vacant properties can face increased exposure to:
- Undetected maintenance problems
- Weather-related Damage
- Vandalism and malicious mischief
- Theft or attempted theft
- Water damage or freezing
- Weather-related damage
- Trespassing
Just as importantly, many property policies contain provisions that can limit coverage after a property has been vacant for a specified period. Exactly how vacancy is defined (and when restrictions apply) depends on the individual policy.
That makes one question especially important to ask:
“Is the property currently occupied?”
The answer may uncover an exposure that requires a different coverage solution.
Vacant doesn't have to mean difficult to place. Concorde General Agency offers access to solutions for a variety of vacant property risks across both Personal Lines and Commercial Lines.
Common Vacancies in Personal Lines
There are plenty of everyday situations that can leave a residential property vacant.
Vacant Homes
A homeowner may move into a new residence before the previous home sells. A home may be sitting empty during an estate settlement. Or someone may purchase a property that won't be occupied immediately. Whatever the circumstances, an extended vacancy may no longer fit the requirements of a traditional homeowners policy.
Rental Dwellings Between Tenants
Rental properties aren't always continuously occupied. A tenant moves out, repairs are needed, or the owner simply needs additional time to find the next renter. A short vacancy can unexpectedly stretch into weeks or months. That's why it's important to understand not only how a rental dwelling is being used today, but what happens to the coverage when there isn't a tenant.
Seasonal Properties
Seasonal homes present an interesting question: Is the property vacant, or is it simply unoccupied because that's how it's intended to be used? A lake cabin, hunting property or other seasonal home might sit unused for months each year. Policy definitions and requirements can vary, so agents should understand how the policy handles those predictable periods of non-occupancy.
Short-Term Rentals
Short-term rentals create another unique occupancy situation. A property may alternate frequently between guests and periods when no one is staying there. Because short-term rental activity may also be treated differently from traditional owner-occupied residential use, agents should make sure the coverage matches both the rental exposure and periods of non-occupancy.
The important thing is not to assume that a policy will respond the same way regardless of how long the property sits empty.
Run a Personal Lines Risk by Our Team!
Our Personal Lines team can help agents explore options for residential properties with vacancy or occupancy challenges. Every risk is different, so details about the property's use, condition, expected length of vacancy and future plans can help determine the appropriate coverage option. Admitted & surplus lines products available.
Learn More
Vacant Commercial Buildings & Land
Vacancy is just as important on the commercial side. A commercial building could become vacant because:
- A tenant moved out and the owner is searching for a replacement
- The property is being held for sale
- A business closed or relocated
- The building is awaiting redevelopment or renovation
- Occupancy has dropped significantly in a multi-tenant building
Commercial property forms may define vacancy based on how much of the building is rented or being used for customary operations—not simply whether the building is completely empty.
Once a property meets the policy's definition of vacant for a specified amount of time, certain coverages may be restricted. That can be particularly significant because vacant buildings may be more susceptible to vandalism, theft, water damage and other losses.
The takeaway for agents: Don't wait until there's a claim to find out how a policy treats vacancy.
Quote Commercial Accounts Online with AUGold or USLI
Have a vacant commercial property risk? Concorde offers access to USLI & AUGold online quoting platforms for eligible vacant buildings and land. It's a convenient option when you want to quickly explore coverage for a vacant property without submitting Acords.
Submit an App for Additional Commercial Options
Not every vacant building fits neatly into an online quoting platform—and that's where Concorde's Commercial teams can help. If you already work with a Commercial Underwriter, you can submit Acords or call for direction on options available. We love to talk through risks!
Our team has access to multiple markets for vacant commercial properties and can shop the risk to find competitive coverage options. Whether it's a straightforward vacant building or an account with more challenging characteristics, send us the details and let our team go to work.
Commercial Direct Bill Team Commercial Agency Bill Team
TL/DR: See a Vacant Property... Think Concorde.
Vacancy can happen for dozens of reasons—and it can affect everything from a single-family home to a rental property, seasonal residence or commercial building. The key is recognizing the exposure before it becomes a coverage problem.
Long story short... Have a vacant property to quote? Start with Concorde.