It is finally holiday time! That wonderful time of year when we go over the river and through the woods to Grandmother’s house. Which leaves our home empty. How does an empty home affect insurance? Let’s look at an example.

An empty unit in your community was vandalized. There is significant damage to the interior, patio and fencing. The unit owner and some of the board members want to file an insurance claim, but there is concern that it won’t be covered since the unit was vacant. What do you do?

Most insurance policies contain “vacancy provisions” meaning coverage can be reduced or excluded in the event of vacancy. Sometimes, board members are hesitant to open a claim for vandalism or water damage if the unit affected is currently empty assuming that there would be no coverage.

Most vacancy provisions apply to entire buildings, not individual units. Usually, over half of the units in a building would need to be empty in order for a “vacancy provision” to apply. Farmers Insurance policies require 70% vacancy for more than 60 days in order for the provision to apply.

Even if you do have a truly vacant building, only certain types of loss would usually be excluded (vandalism, water damage, theft, etc.). If the building caught fire or was run into by a vehicle, for example, coverage would still apply, though it may be reduced.

As far as that single, empty and vandalized unit, if the damage will exceed the deductible, go ahead and open that claim. That is why you have insurance after all, right?

Terri Guest, CIRMS, CMCA is the Northern California Sales & Marketing Representative for Berg Insurance Agency and can be reached at Terri@berginsurance.com. Have an insurance question? Ask Terri and your question may be the subject of next month’s edition of Coverage Corner! If your question is picked, you will win a gift card!