What Happens to Your Insurance If Your Office Building Is Vacant?
Introduction
A vacant office building can feel like a “quiet win” — fewer people on site, fewer day-to-day issues, and time to plan the next move. But from an insurer’s perspective, a vacant property is a higher-risk property. Break-ins, vandalism, undetected leaks, arson, and gradual deterioration are all more likely when a building is empty.
That’s why many commercial property and commercial combined policies include strict vacancy (or “unoccupancy”) conditions. If you don’t follow them, you could face reduced cover, higher excesses, or a declined claim.
This guide explains what “vacant” usually means in insurance terms, how vacancy affects office building cover, what you should do immediately, and how to arrange specialist vacant property insurance when needed.
What does “vacant” mean for insurance?
In everyday language, “vacant” means nobody is using the building. In insurance, the definition can be more specific and depends on your policy wording.
Common policy definitions include:
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Unoccupied: No one is living or working there, but the building may still contain furniture or equipment.
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Vacant: Typically empty of contents and not in use, sometimes also meaning utilities may be reduced or turned off.
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Disused: Not used for its intended purpose, possibly with limited access.
For an office building, insurers often focus on whether:
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The premises are in active business use
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There are regular visits (and how regular)
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There are staff present for meaningful periods
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The building is furnished and operational (heating, alarm, IT, etc.)
A caretaker visiting once a week might not count as “occupied” under your policy. Many policies require the premises to be “occupied” in the sense of being used for normal business operations.
Why do insurers treat vacant office buildings as higher risk?
Vacant buildings are statistically more likely to suffer losses, and those losses are often more severe.
Key risk drivers include:
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Theft and malicious damage: Empty buildings are attractive targets.
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Arson: Vacant sites can be targeted intentionally.
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Escape of water: A small leak can run for days or weeks unnoticed.
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Fire detection delays: No staff means slower discovery and response.
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Deterioration: Minor maintenance issues become major claims.
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Liability exposures: Trespassers, contractors, or squatters can be injured.
Because of this, insurers often apply tighter terms once a building is vacant.
The vacancy clause: the part of your policy that matters most
Most commercial property policies include a vacancy/unoccupancy condition. It may appear under:
Typical vacancy clauses may:
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Define vacancy after a set number of consecutive days
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Require you to notify the insurer once the building becomes vacant
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Restrict cover for certain perils (e.g., theft, malicious damage)
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Require additional protections (alarms, inspections, draining down)
If you breach a condition, the insurer may:
The key point: vacancy isn’t just an underwriting detail — it can be a claims issue.
How long can an office building be vacant before insurance is affected?
There’s no single rule, but common vacancy thresholds in commercial insurance include:
Many office building policies start applying restrictions after 30 consecutive days of being unoccupied.
Important: the clock usually starts when the building becomes “unoccupied” as defined by the policy, not when you decide it’s vacant.
What parts of your insurance are most affected by vacancy?
Vacancy can impact several sections of cover, especially within commercial combined insurance.
1) Buildings insurance (property damage)
Your buildings cover may remain in place, but with restrictions.
Common changes include:
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Theft cover restricted (often only “forcible and violent entry/exit”)
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Malicious damage excluded
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Escape of water restricted unless inspections and heating controls are followed
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Fire cover retained but with additional conditions
In some cases, insurers may only cover “FLEA” perils:
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Fire
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Lightning
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Explosion
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Aircraft
Everything else may be excluded until the building is occupied again or moved to a vacant property policy.
2) Contents insurance
If the building is empty, contents cover may be irrelevant. But if you leave furniture, IT equipment, or stock behind, insurers may:
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Limit cover to a lower sum insured
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Exclude theft unless specific security measures are met
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Require removal of attractive items
3) Business interruption (loss of rent / loss of gross profit)
If the building isn’t operating, business interruption cover may not respond the way you expect.
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If you’re not trading from the premises, loss of gross profit may be difficult to evidence.
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If you’re a landlord, loss of rent may be affected if the property is already vacant.
4) Property owners liability / public liability
Liability risks can increase when a building is vacant.
Insurers may require:
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Secure perimeters and locked access points
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Regular inspections and documented site visits
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Prompt repairs to hazards (loose paving, broken glass, unsafe stairs)
If the building is accessible and someone is injured, you’ll want confidence that your liability cover remains valid.
5) Employers’ liability
If there are no employees working there, employers’ liability might be less relevant. But if you have staff visiting (maintenance, security, facilities), you may still have exposure.
6) Glass, money, and theft extensions
These are often the first covers to be restricted or removed when a property becomes vacant.
Common exclusions and restrictions when an office is vacant
While wording varies, these are frequent vacancy-related restrictions:
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Theft: Covered only following forcible and violent entry/exit; sometimes excluded entirely.
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Malicious damage/vandalism: Often excluded after a vacancy period.
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Escape of water: Excluded unless the system is drained down or the building is heated and inspected.
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Storm/flood: Sometimes restricted if maintenance is poor or the building is in disrepair.
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Accidental damage: Often removed.
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Subsidence: May be restricted if the building is not maintained.
Also watch for:
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Alarm requirements: “Alarm must be set whenever the premises are closed and keys removed.”
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Inspection requirements: “Inspected internally and externally at least every 7 days.”
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Maintenance requirements: “Any damage must be repaired promptly.”
What you should do as soon as your office building becomes vacant
If your office is going to be empty for more than a short period, treat it like a project with a checklist.
Step 1: Check your policy wording (don’t assume)
Find the vacancy/unoccupancy clause and confirm:
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The vacancy period threshold (30/60/90 days)
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Notification requirements
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Inspection frequency
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Security requirements
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Any “warranties” (these can be strict)
If you’re unsure, ask your broker to confirm in writing.
Step 2: Notify your insurer or broker early
Don’t wait until day 29.
Tell them:
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Date the building became (or will become) vacant
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Whether any contents remain
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Whether utilities will stay on
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Whether there will be contractors on site
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Your plan (re-let, refurbish, sell, mothball)
Early notification gives you options: an endorsement, a revised policy, or a specialist vacant property policy.
Step 3: Secure the property properly
Insurers often expect “reasonable precautions” plus specific security conditions.
Practical measures include:
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Ensure all external doors/windows are locked and in good repair
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Maintain intruder alarm (and confirm it’s monitored if required)
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Consider additional physical security (shutters, security-rated locks)
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Secure letterboxes to reduce arson risk
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Remove ladders, tools, and anything that helps access
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Improve lighting and perimeter security
Step 4: Manage water and heating risk
Escape of water is one of the most common and expensive vacant property claims.
Typical insurer expectations:
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Keep heating at a minimum temperature during cold months, or
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Drain down water systems (and document it)
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Isolate non-essential water supplies
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Ensure gutters and drains are clear
Step 5: Arrange regular inspections and keep records
If your policy requires inspections every 7 days, do them every 7 days.
Best practice:
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Use a checklist
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Take dated photos
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Record who attended, when, and what was checked
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Act on issues immediately
If a claim happens, inspection logs can be the difference between a smooth settlement and a dispute.
Step 6: Keep the building in a good state of repair
Vacancy doesn’t remove your duty to maintain the property.
Address:
Do you need specialist vacant office building insurance?
If the building will be vacant beyond your policy’s allowed period, or your insurer applies heavy restrictions, a specialist vacant property policy is often the right move.
Vacant property insurance can be arranged for:
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Vacant office buildings
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Empty commercial units
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Buildings awaiting sale or lease
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Properties undergoing refurbishment
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Insolvency/administration situations
Cover can include (depending on underwriting):
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Buildings insurance for a wider range of perils
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Property owners liability
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Loss of rent (in some cases)
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Cover during refurbishment (subject to works)
Expect insurers to ask detailed questions about:
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Construction type
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Security and alarm details
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Inspection frequency
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Any history of claims or break-ins
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Condition of the roof and services
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Whether there are any hazardous materials
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Whether there are any ongoing works
What about refurbishment or contractors on site?
A building can be “vacant” but still have contractors working.
This can create two issues:
If you’re refurbishing, you may need:
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A vacant property policy with a refurbishment extension, or
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A contract works / contractors all risks policy, plus
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Public liability and employers’ liability for contractors (and evidence of their insurance)
Always confirm:
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Who is responsible for insuring the works
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Whether hot works are involved (welding, cutting)
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Whether the insurer requires a hot works permit system
Claims examples: how vacancy can affect outcomes
Here are realistic scenarios that show why vacancy matters.
Example 1: Escape of water after a freeze
Your office is empty over winter. Heating is turned off to save money. A pipe freezes and bursts, causing extensive water damage.
If your policy requires heating to be maintained or water to be drained down, the insurer may restrict or decline the claim if conditions weren’t met.
Example 2: Theft with no forcible entry
A vacant office still contains computers. Someone gains access through an unsecured window or a door left on a latch.
Many policies only cover theft involving forcible and violent entry/exit. Without clear evidence, the claim may be rejected.
Example 3: Vandalism and malicious damage
A vacant building is targeted and vandalised.
Malicious damage is commonly excluded once the property has been unoccupied beyond the policy threshold.
Example 4: Injury to a trespasser
A trespasser enters the site and is injured.
Property owners liability may still respond, but insurers will look closely at whether you took reasonable steps to secure the premises.
How to reduce the cost of vacant property insurance
Vacant property cover can be more expensive, but you can often improve terms by reducing risk.
Practical steps that can help:
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Install or maintain a monitored intruder alarm
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Add CCTV with recording and signage
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Improve perimeter fencing and gates
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Use security patrols or a property guardian scheme (where appropriate)
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Maintain weekly inspections (or more frequent if required)
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Drain down water systems and isolate services
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Remove combustible waste and secure bins away from the building
The goal is to show the insurer you’re actively managing the risk, not just leaving the building unattended.
Landlords vs owner-occupiers: does it change anything?
Yes.
If you’re the landlord
You may need a property owners policy that includes:
If the unit is vacant between tenants, you’ll want cover that is designed for that scenario.
If you’re the owner-occupier
If you’ve moved operations elsewhere, you may no longer need business interruption cover for that site, but you still need:
What to tell your broker (to get the right cover fast)
To arrange the right terms quickly, have these details ready:
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Full address and postcode
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Building use (office, mixed use, serviced offices)
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Date last occupied and expected vacancy duration
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Construction (standard/non-standard)
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Number of floors and approximate floor area
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Security: locks, alarm type, monitoring, CCTV
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Inspection plan (frequency and who will do it)
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Utilities status (gas/electric/water on or isolated)
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Any works planned (value, type, duration)
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Any previous claims or incidents
The more complete the information, the faster you can secure terms.
FAQs: Vacant office building insurance
How long can my office be empty before my insurance is invalid?
It depends on your policy wording. Many commercial property policies apply restrictions after 30 consecutive days unoccupied. Some allow 60 or 90 days. Always check your vacancy clause and notify your insurer early.
Does a weekly visit count as “occupied”?
Usually not. Many policies define occupancy as normal business use, not occasional visits. Weekly inspections may be required, but they don’t necessarily reset the vacancy period.
Will my insurer still cover fire if the building is vacant?
Often yes, but other perils like theft, malicious damage, and escape of water may be restricted. Some insurers reduce cover to limited perils only.
Can I turn off the water and heating to save money?
Be careful. Many policies require either maintaining a minimum temperature or draining down the water system. If you don’t follow the condition, escape of water claims may be rejected.
What if I’m refurbishing the office while it’s empty?
You must tell your insurer. You may need a refurbishment extension, contract works cover, or a specialist policy. Hot works and structural changes can affect cover significantly.
Do I need liability insurance for a vacant building?
Yes. Even when vacant, you can still be liable for injuries to trespassers, contractors, or visitors. Property owners liability is a key part of vacant property cover.
Will vacant property insurance cover theft?
It can, but terms are often stricter. Insurers may require alarms, better locks, and evidence of forcible entry. High-value items left on site can increase premium or be excluded.
What happens if I don’t tell my insurer the building is vacant?
If the insurer would have offered different terms (or not offered cover) had they known, a claim could be reduced or declined. Notification is critical.
Can I insure a vacant office building for a short period?
Yes. Many insurers offer short-term cover (e.g., 3, 6, or 12 months), but availability depends on the risk details and security.
Conclusion
If your office building is vacant, your insurance can change quickly — sometimes after as little as 30 days. The most common impacts are restrictions on theft, malicious damage, and escape of water, along with stricter security and inspection requirements.
The safest approach is simple: check your vacancy clause, notify your insurer or broker early, and put a clear security and inspection plan in place. If the vacancy will be extended, specialist vacant property insurance can protect you properly while you re-let, refurbish, or sell.
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