Vacant Building and Property Insurance

Zurich’s Excess & Surplus (E&S) Vacant Property coverage has a broad appetite for all types of vacant buildings. Available nationwide with coverage limits up to $25 million. Higher limits may be available depending on risk characteristics.

Business owners: Contact your insurance agent or broker

Call a specialist now 847-762-7151

Appetite

All types of vacant buildings
Limited critical flood or earthquake
Minimum premium $10,000

Coverage offered

Property and Equipment Breakdown
Named Perils to All Risk
Actual Cash Value (ACV) and Replacement Cost Value (RCV) valuation
No coinsurance with proper Insurance-to-Value (ITV) ratio

Ineligible risks

Abandoned properties
Risks previously occupied as chemical or heavy manufacturing or warehousing
No windstorm coverage in tier 1 or 2 counties

Geography

Nationwide except Alabama, Florida, Kansas, Louisiana, Oklahoma, and Texas

Accord application and Statement of values if more than one location.
Vacant Building application.
Cover letter telling us the story of the risk:
- Why the building is currently vacant including prior occupancy and intended use.
- Who the current owner is and their experience in owning this and other properties.
- What terms you are looking for including ACV/RC, Special / Basic, limits, deductibles and any key client concerns.

Program limits up to $25 million for primary and excess. Higher limits may be available depending on the risk characteristics.
Minimum premium: $10,000.
Minimum deductible: $5,000.

Frequently Asked Questions

What is vacant property insurance?

Vacant property insurance can help protect a business against losses when a property is vacant for an extended period. Coverage needs can vary based on risk exposures, length of vacancy, reason for vacancy and other factors.

What are common vacant property risk exposures?

An unoccupied property faces increased risk of vandalism, theft, water damage, fire damage, wind damage and other losses. While newly acquired properties or buildings undergoing renovations have long been the structures most at risk from these exposures, the COVID-19 pandemic that any business may suddenly need to protect vacant property that may need to stay empty for a very long time. Even as we come out of the pandemic, some companies may find some remote working will continue, which may affect occupancies at some of their properties.

Why is vacant property insurance needed?

Vacant property insurance coverage may be needed beyond what is in a company’s standard property insurance policy. Businesses need to consider what’s required to protect their vacant properties, whether from purposeful damage caused by a criminal or an accident such as sprinkler system leakage. There may be vacant property insurance provisions for certain losses based on length of time a building is unoccupied, so that must be considered when selecting the right coverage.

When is a property considered vacant?

A property is considered vacant if less than 32% of the building is occupied for an extended period of time. It may be vacant for multiple reasons, including needed repairs or renovations that make it unsafe for people to be in the building, a public health issue (such as the COVID-19 pandemic) that requires employees to work from home or other locations, or a sale or change in purpose for the building that requires it to be unoccupied until it is ready for its new use or new owners, managers, employees or customers.

What kinds of vacant properties are covered?

Zurich’s Excess & Surplus (E&S) Vacant Property Insurance has a broad appetite for all types of vacant commercial buildings — stand-alone retail spaces, strip malls, high-rise office buildings, warehouses and more. Our vacant property insurance is available in most states with coverage limits up to $25 million. (Higher limits may be available depending on risk characteristics.) We work through a program administrator with extensive experience in covering vacant properties nationwide.