Definition
Vacancy clauses limit or deny coverage for properties unoccupied beyond 30-60 days. Landlords must notify insurers to maintain coverage.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Vacancy clauses protect insurers against increased risk from unmaintained properties. Clauses typically limit coverage after 30-60 days of vacancy. Landlords with vacant properties need to notify insurers to maintain coverage. Understanding vacancy limitations is critical for investor properties.
Pro Tip
Notify insurers immediately if rental property becomes vacant.
Example
Vacancy clause denies coverage for losses occurring after property is vacant for 60 consecutive days.