Vacancy or unoccupancy provisions reduce or eliminate coverage after the premises have been vacant/unoccupied for approximately how many days?

• A. 60 days
• B. 15 days
• C. 120 days
• D. 30 days

Answer: (A)

Vacancy or unoccupancy provisions exist because the risk to a property rises when no one is using or monitoring it. After the premises sits vacant for a longer period, insurers often reduce or eliminate coverage for certain perils such as vandalism, theft, and possibly damage from other causes, since damage can go unnoticed and the property is more vulnerable. In many standard property policies, that reduction or exclusion typically kicks in after about 60 consecutive days of vacancy. If the property remains vacant longer, or if the insured notifies the insurer or obtains a vacancy endorsement, coverage terms may change or be restored.