A pipe in the attic of an unheated vacant unit froze and burst. The water damaged both the vacant and the occupied units in the building. Frederick filed a claim for the damage, but American National denied coverage because heat was not maintained in the vacant unit.

Frederick argued that coverage did apply because the occupied unit was heated.

Click here to see if the unit's vacancy impacted the final settlement.

American National did not deny coverage because the unit or building was vacant. It denied coverage because the pipes froze when heat was not maintained.

This important exclusion applies regardless of the number of days the heat is off.

Consider this carefully when discussing vacancy provisions with a customer. While the vacancy provision does not apply until the building is vacant for 60 days, the frozen pipes exclusion applies as soon as the heat is turned off.

Click here to review the PF&M Commercial Property Vacancy Discussion.

Buildings that are entirely vacant or even partially vacant can be difficult to cover. However, there are markets that specialize in this exposure. These markets can provide tips on ways to protect the buildings from damage, in addition to providing needed insurance coverage.

Click here to read a Rough Notes Magazine article about insuring vacant buildings.

Do your customers understand the significant impact vacancy can have on their insurance coverage? A timely letter could bring it to their attention before an uncovered loss occurs.

Ken.www.rn-agencyonline.com/letters/4-g-9.htm

Click here for a Business Building Letter you might consider sending to your customers.