Vacant properties aren’t just empty buildings, they can be huge magnets for risk. Whether it’s a commercial unit awaiting lease or a single-family home between tenants, these properties are more vulnerable to threats like vandalism, fire, and unauthorized entry. And insurance companies know it.
When a property is left unattended, it no longer benefits from the natural oversight of daily activity. That absence makes it an outsized liability. For property managers, the implications go beyond just physical security. A lack of precaution can affect everything from insurance premiums to whether coverage is extended at all.
This article walks through how different forms of security influence the insurance landscape for vacant buildings. You’ll learn how to reduce your risks, cut costs, and make sure you’re not left without protection when you need it most.
Why Insurance on Vacant Properties Is Complicated
Vacancy and unoccupancy may sound similar, but insurers treat them differently. An “unoccupied” property might still have furnishings or occasional use. A “vacant” one is entirely empty, often signaling a halt in daily operations.
Most insurers limit coverage once a building has been vacant for 30 to 60 days. At that point, they start to worry about a range of risks: from burst pipes that go unnoticed, to trespassers causing fires or stealing copper piping. These are not just hypotheticals, they happen, and they can cost insurers and owners dearly.
As a result, premiums often jump. Coverage for vandalism or water damage may be reduced or excluded. In worst-case scenarios, policies are voided altogether.
What Insurance Companies Look For in Risk Assessment
When determining the level of risk for a vacant property, insurers use a checklist of red flags and green lights. Among the top considerations:
- Are there monitored alarm systems or live video surveillance?
- How often is the property inspected, and are records kept?
- Is the property visibly maintained? This includes lighting, landscaping, and mail collection.
- Are there signs of recent use or occupancy, such as power on or operational HVAC?
These elements aren’t just about deterring crime. They demonstrate to insurers that the property is being responsibly managed. A secure, well-maintained building is less likely to experience a loss, and that lowers the risk for everyone involved.
How Security Measures Can Reduce Insurance Costs
Security upgrades can be huge cost savers for your property. Here’s how:
- Alarm Systems: Alerts can catch break-ins or fire early, minimizing loss.
- Live Video Monitoring: Provides real-time visibility and can document events for claims.
- Smart Locks and Access Control: Prevent unauthorized entry and log every access.
- Motion-Sensor Lighting: Deters criminal activity by increasing visibility.
- Routine Inspections: Proving that someone checks in regularly reduces perceived risk.
Many insurers offer discounts for properties that demonstrate lower risk through these types of upgrades. In some cases, the presence of live monitoring can mean the difference between qualifying for a policy or not.
In the long run, the investment pays for itself. Reduced premiums, fewer claims, and minimized damage all lead to a healthier bottom line.
The Cost of Doing Nothing
Imagine a vacant home being renovated. With no surveillance or monitoring, a thief breaks in over a weekend and strips it of appliances and copper wiring. The total damage exceeds $25,000. But when the owner files a claim, it’s denied. Why? The policy lapsed due to prolonged vacancy without notice or risk mitigation.
These scenarios are all too common. Theft of building materials, vandalism that degrades the property, or injuries from trespassers can result in lawsuits. Without documented monitoring or visible precautions, the property manager could face not only financial loss but also potential liability.
Inaction is expensive.
Building a Vacancy Security Plan
Managing a vacant property requires more than locking the doors. It requires a security plan. Here’s what that might include:
- Install live-monitored video surveillance across key access points.
- Post signage that clearly states the property is monitored 24/7.
- Secure all doors, windows, and possible points of entry.
- Conduct scheduled inspections and maintain written logs.
- Notify law enforcement and your insurer when a vacancy is extended.
These steps show diligence and foresight. They protect not only the physical asset but also preserve your ability to insure it affordably.
What Are Your Next Steps?
Security for vacant property is more than a checkbox. It’s a financial strategy. The right measures reduce risk, protect your investment, and keep insurance costs manageable.
For property managers, it pays, literally and figuratively, to be proactive. Don’t wait for an incident to rethink your approach. Secure your property now, and ensure peace of mind down the road.
If you oversee properties that are often empty or between uses, it may be worth exploring a professional monitoring solution. EyeQ offers 24/7 AI-assisted monitoring that aligns with insurer requirements and keeps your properties secure.
