What it does
Under CP 00 10 and the other coverage forms, a building vacant for more than 60 consecutive days loses coverage for vandalism, sprinkler leakage, building glass breakage, water damage, theft and attempted theft. Other covered losses are reduced by 15%. CP 04 50 says the Vacancy loss condition does not apply to loss at the locations and during the permit period shown in the Schedule or Declarations.
Key provisions
- The Schedule shows the premises, building and permit period (from and to dates).
- The insurer can still keep vandalism and/or sprinkler leakage as "excepted causes of loss". For those perils the vacancy restriction continues even during the permit.
- The 07 88 edition remains the current edition.
Who needs it
Lessors between tenants, owners of buildings listed for sale, foreclosed or estate properties, and buildings undergoing renovation that do not meet the form's renovation exception.
Quoting and selling notes
- Ask when the building became or will become vacant, how it is secured and heated, whether utilities and sprinklers stay on, and the expected occupancy date.
- Underwriters usually charge additional premium and may require inspections.
- CP 04 60 (Vacancy Changes) is a different fix: it redefines vacancy for partially occupied buildings rather than suspending the condition.
