Vacancy can materially change the risk associated with a commercial property.

A vacant property can have a higher exposure to:

• Theft.
• Vandalism.
• Malicious damage.
• Fire.
• Water damage going unnoticed.
• Squatting.
• Deterioration.

When is a property considered vacant? #

This depends on the policy.

A property may be treated differently where:

• No tenant occupies it.
• Business activities have stopped.
• Contents have been removed.
• The building is awaiting a new tenant.
• Renovations are taking place.

The policy can also apply special conditions after a specified period of vacancy.

Does insurance automatically stop when a tenant leaves? #

Not necessarily.

However, cover can change once a property has remained vacant beyond the period allowed by the insurer.

The insurer may:

• Restrict certain insured events.
• Increase the excess.
• Apply security requirements.
• Charge an additional premium.
• Require inspections.
• Decline continued cover.

What should I do if a tenant moves out? #

Tell Webber Insurance promptly where a commercial property becomes vacant or is expected to remain unoccupied.

Useful information includes:

• Date the tenant left.
• Expected vacancy period.
• Security arrangements.
• Property inspections.
• Utilities remaining connected.
• Plans for a replacement tenant or renovation.

What if the property is undergoing renovation? #

Renovation or construction work can create a different exposure again.

Depending on the scale of the works, Contract Works Insurance or another arrangement may need to be considered.