What happens if a building is vacant for more than 60 consecutive days?

When a building is vacant for more than 60 consecutive days, the insurance policy typically imposes specific restrictions designed to mitigate risks associated with unoccupied properties. One common outcome is that certain causes of loss may be excluded from coverage. This essentially means that the insurer may not cover certain types of damage that could occur during this vacancy, recognizing that unoccupied buildings are at greater risk for issues such as vandalism, theft, or undetected maintenance problems.

Furthermore, it's also common practice for these policies to reduce the amount payable on any claims that occur during this vacant period. The 15% reduction mentioned indicates that even if a claim is still valid, the policy will pay out a lower percentage of the claim amount due to the increased risk during the vacancy.

This practice is standard in many property insurance policies, as insurers seek to manage the increased likelihood of claims when properties are not maintained or monitored. Therefore, it's important for property owners to be aware of the implications of vacancy on their coverage, especially to avoid surprise exclusions or reductions in claim payments.