Vacancy is not what you think it is - COVID 19
During this time of quarantine and possibly limited or no operations.... let's look at the vacancy provision of a property policy. Remember that an insurance policy has its own definition of what is vacant.
Do you have a vacant building? Maybe.
What then, are the consequences of having a vacant building? Limited or no recovery.
Can you do anything about it? Many times, yes.
We also need to place focus on policyholder duties in the event of loss or damage to covered property.
ISO CP 00 10 10 12
a. Description Of Terms
(1) As used in this Vacancy Condition, the term building and the term vacant have the meanings set forth in (1)(a) and (1)(b) below:
(a) When this policy is issued to a tenant, and with respect to that tenant's interest in Covered Property, building means the unit or suite rented or leased to the tenant. Such building is vacant when it does not contain enough business personal property to conduct customary operations.
(b) When this policy is issued to the owner or general lessee of a building, building means the entire building. Such building is vacant unless at least 31% of its total square footage is: (i) Rented to a lessee or sublessee and used by the lessee or sublessee to conduct its customary operations; and/or (ii) Used by the building owner to conduct customary operations.
(2) Buildings under construction or renovation are not considered vacant