In a commercial property policy, what happens if a building has been vacant for 90 days?

In commercial property policies, the terms surrounding coverage when a building is vacant are crucial for both the insurer and the policyholder. When a building has been vacant for 90 days, a common provision in many insurance policies is that coverage for certain unnamed perils is reduced. This reduction often reflects the increased risks associated with vacant buildings—such as theft, vandalism, or neglect—that insurance companies take into account when underwriting policies.

The correct answer indicates that after 90 days of vacancy, there is a specified percentage reduction in coverage for unnamed perils. This change emphasizes the insurer's perspective on minimizing risk exposure. The reduction by 25% is a typical condition outlined to encourage property security and proper maintenance, thereby reducing the likelihood of claims.

While it's important to understand that certain theft-related perils and damage from other risks may not be covered as comprehensively when a property is vacant, the specific implications of vacancy before reaching the 90-day mark can lead to varying coverage stipulations, which may not apply universally across all types of policies.