1. What does "vacant" mean?
"Vacant" is defined as follows:
An unoccupied residential or commercial property that is not lived in, worked in or put to use for any other purpose
An unoccupied residential or commercial property that is not undergoing remodeling. If the property is undergoing repairs or
remodeling it must be unoccupied except for the owner or a building trade temporarily occupying it for the sole purpose of
repairing it or renovating it.
*Any part-time or seasonal usage of the property will preclude coverage
*Properties with multiple commercial units must be 100% vacant in order to qualify for coverage
4. What is the difference between a "vacant" dwelling policy and a "vacant dwelling renovations" policy?
The "vacant" dwelling policy is strictly intended to provide coverage for a "vacant" building that will have no occupancy or activity whatsoever except to show to potential buyers or renters. The Vacancy Warranty (F135) attached to the policy suspends coverage if the insured fails to meet this requirement.
The "vacant dwelling renovations policy" does not have the Vacancy Warranty (F135) attached. Therefore, it allows for activities related to remodeling or renovating.
5. What property coverage form is provided?
Coverage is provided using the Commercial Basic Causes of Loss Form CP1010 along with either CP0010 (Building & Pers Prop Coverage Form), CP0020 (Builders Risk Coverage Form) or CP0018 (Condominium Unit Owner Coverage Form). Coverage is also available under the Commercial Special Causes of Loss Form CP1030 along with either CP0010 ( Building & Personal Property Coverage Form), CP0020 (Builders Risk Coverage Form) or CP0018 (Condominium Unit Owner Coverage Form). Special Cause of Loss is available including Theft or Excluding Theft. The building must have an active central station alarm to qualify for Special Cause of Loss including theft. Additionally, to qualify for special form, the building must be located in protection class 1 to 7, not be more than 30 years old and had no prior losses.
7. What policy terms are offered?
The standard term is 12 months. However, 3 and 6 month terms are available in many states. Premium for the first 3 months is always fully (100%) earned (except in Michigan and Texas).
10. What is the minimum applicable deductible?
The minimum property deductible for risks with a prior residential occupancy is $250 per building. Deductible option up to $5,000 are available for those types of risks. The minimum property deductible for risks with a prior commercial occupancy is $500. Deductible options up to $10,000 are available for those types of risks.
12. Does Coinsurance apply?
Yes, an 80% coinsurance clause applies to building and personal property; 100% coinsurance applies to renovation values
and builders risks.
If Agreed Amount is selected as the valuation type, the coinsurance clause does not apply to the building limit or personal
property limit (if applicable). However, we will not pay more for loss or damage to property with an Agreed Amount
valuation than the proportion that the limit of insurance bears to the Agreed Value (Amount) shown in the commercial
property declarations.
14. How will I be billed?
The applicant will be billed directly upon approval of the policy. All subsequent premium payments will also be billed directly to the billing party on the policy.
18. Vacancies over 1 year – will you consider?
Length of vacancy is not an issue under this program as long as the property is in good condition, properly secured and checked regularly. Any properties that have been vacant for longer than 3 years are subject to underwriting review.
Please contact underwriting at 800-310-3351 if you have a property that has been vacant for more than 3 years.
20. How do I obtain a commercial quote?
To obtain a commercial quote, all you need to do is:
Click on the Agent Sign In/Quote tab and log into the system, if you have an agency account, and click on the New Quote button.
If you don't currently do business with us, click the Get an Agency Account button on the sign in page to sign up.
25. Are there any limitations based on the number of acres of the property?
Residential properties that are 5 acres or less can be quoted through the system with liability coverage included. Any properties larger than 5 acres can only be written without liability coverage.
Commercial properties that are 10 acres or less can be quoted through the system with liability coverage included. Any properties larger than 10 acres can only be written without liability coverage.