Vacant Property Insurance

An empty building isn’t a low-risk building. Vandalism, water damage and liability claims don’t stop when your tenants leave. Get a custom vacant property insurance policy and protect your assets. 

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Trusted by 100,000+
Canadian small businesses
coast to coast.
Instant price. All online.
Coverage in just a few clicks.
Expert brokers,
working for you.
24/7 claims support.
Get a Free Quote in 3 Minutes
Zensurance - Vacant Commercial Property Owner
Commercial Property

What is vacant property insurance?

Vacant commercial property insurance is specialized coverage for a commercial building that’s empty, mostly empty, or no longer used for its normal business purpose. It replaces or supplements the coverage a standard commercial property policy pulls back once a building has been vacant beyond your insurer’s stated limit.

You may also see it called vacant building insurance or unoccupied property insurance. Because a vacant building faces both property risks and liability risks, most policies pair property coverage with commercial general liability.

You can buy it as a standalone policy or add it to an existing commercial property policy through a vacancy permit or endorsement. It’s designed for properties like:

  • Retail stores, offices, or warehouses awaiting a new tenant
  • Buildings listed for sale
  • Properties between tenants
  • Businesses that have temporarily or permanently closed
  • Buildings awaiting demolition, redevelopment or renovation
  • Newly purchased commercial buildings that aren’t yet occupied

If you own a commercial building that’s sitting empty, yes. Your existing commercial property insurance may exclude coverage for a vacant business property, leaving a gap that puts your asset at risk the moment something goes wrong. A vacant property policy fills that gap.

Common reasons a commercial property ends up vacant:

  • You’ve closed or paused operations and your team is working remotely
  • The building is listed for sale
  • You’re between tenants and actively looking for a new one
  • The business has filed for bankruptcy and closed to the public
  • Renovations, demolition or redevelopment are underway, or the space is otherwise uninhabitable

Every insurer defines “vacant” differently. Some treat a property as vacant after as little as four days; others allow 30 or more.

A vacant property policy is built from a few core coverages. The right mix depends on why your building is empty and what’s still inside it. 

  • Commercial General Liability (CGL) Insurance. CGL covers third-party bodily injury and property damage claims made against you – one of the most common coverages small business owners buy. Say someone slips and falls on your vacant property and sues. CGL may cover the injured person’s medical expenses and your legal fees regardless of the outcome of the lawsuit. It can also cover minor medical costs even if no lawsuit is filed. 
  • Commercial Property Insurance. This covers the building itself and everything left inside it – contents and inventory, furniture, electronics and office equipment – against fire, windstorms, theft and vandalism. 
  • Equipment Breakdown Insurance. Left machinery or equipment behind? It still needs protection. Equipment breakdown insurance, also known as boiler and machinery coverage, covers sudden mechanical or electrical failure – a seized HVAC unit, a burnt-out electrical panel, a boiler that fails while the building sits unheated. It pays to repair or replace the equipment and, in some cases, the damage the breakdown causes. 
  • Builder’s Risk Insurance. If your vacant commercial property is undergoing construction or renovations, you may need builder’s risk insurance – also called ‘vacant with renovations’ insurance. It protects you from the start to the end of a project, including coverage for the building, construction materials and equipment onsite, and damage from fire, theft or vandalism during the build.

Premiums for vacant property coverage vary widely because vacancy itself is a risk factor – an empty building files more claims than an occupied one. Your price depends on: 

  • The location of your property, its size, and the condition and age of the building
  • How long the property has been vacant, or is expected to be
  • The reason for the vacancy
  • How long you’ve owned the property
  • Previous insurance claims
  • Your annual and projected revenue
  • The coverages you choose and your policy limits

Talk to a Zensurance licensed broker to determine what risks your vacant property is exposed to and get their read on the right level of coverage. 

Getting insured is quick and easy!

Complete our 5-minute online application for a free vacant property insurance quote.

Get a Free Quote

Real-World Vacant Commercial Property Insurance Claim Examples

vacant commercial property vandalized

Commercial Property

Problem: Your vacant business property is vandalized overnight. Windows are smashed and graffiti is sprayed across the walls at the entrance. 

Outcome: Vacant business property insurance may pay to replace the broken windows and cover professional graffiti removal. 

skateboarder on vacant commercial property

General Liability

Problem: Skateboarders start using your empty parking lot and the metal railing outside the main entrance. One of them crashes attempting a trick and breaks his arm. His parents sue you for third-party bodily injury. 

Outcome: Commercial general liability insurance may pay for the youth’s medical expenses and your legal fees if the claim goes to court. 

vacant commercial building

Renovation

Problem: You hire a contractor to renovate the interior while the building sits vacant. Burglars break in overnight and steal the crew’s materials and tools. 

Outcome: Builder’s risk insurance may cover the cost to replace the stolen construction materials and tools. 

Frequently Asked Questions About Vacant Commercial Property Insurance in Canada

Most insurers consider a commercial building vacant once it’s empty of furniture, equipment and business activity for a set number of consecutive days – commonly 30, though some policies use a window as short as four days. It’s important to check your policy details, because that threshold varies by insurer and by policy.

Often, no. Many standard policies include clauses that restrict or remove coverage entirely once a building is left empty for a set duration, and vandalism, glass breakage and water damage are usually the first coverages to go. To keep your property protected, you may need a separate vacant building policy or a vacancy permit added to your existing policy.

A vacancy permit is an endorsement added to your existing commercial property policy that keeps coverage in force while the building is empty. It’s usually issued for a fixed term – 30, 60 or 90 days – and often comes with conditions, like maintaining heat or arranging regular site checks. If your vacancy is short and you already have a property policy in place, a permit is typically cheaper and simpler than buying a standalone vacant building policy. 

A vacant building has no tenant, no business operations and no meaningful contents inside. An unoccupied building is temporarily empty of people but still furnished, stocked and ready to use – think of a seasonal business between seasons. Insurers treat these two situations differently, so check which term your policy uses and how it’s defined. 

Minor cosmetic work may be covered if you tell your insurer first and get written approval. Structural changes or larger projects usually need builder’s risk insurance (also called course of construction insurance) for the duration of the build. 

Yes. A newly purchased commercial building that hasn’t been occupied is treated as vacant by most insurers, and it needs coverage from the day you take possession – not the day your first tenant moves in.

You risk having a claim denied. Vacancy is a material change in risk, and most commercial property policies require you to disclose it. If your insurer discovers the building was empty at the time of loss and you never reported it, the claim can be refused outright and the policy can be voided.

Other business insurance coverage options to consider:

Why Choose Zensurance?

We help Canadian small business owners save time and money. We offer a convenient, affordable way to buy business insurance online.

Affordable Coverage
Compare policies from over 50 insurers and find coverage that fits your budget.

100% Online and Quick
Complete our online application and receive a customized quote in under five minutes.

24/7 Claims Support
Our Claims team is available 24/7 to assist you in filing a claim and ensure it is addressed quickly.

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Zensurance 3-Step Process and Monthly Premium Mobile Interface

Why Choose Zensurance?

We help Canadian small business owners save time and money. We offer a convenient, affordable way to buy business insurance online.

Affordable Coverage
Compare policies from over 50 insurers and find coverage that fits your budget.

100% Online and Quick
Complete our online application and receive a customized quote in under five minutes.

24/7 Claims Support
Our Claims team is available 24/7 to assist you in filing a claim and ensure it is addressed quickly.

How to Get Vacant Commercial Property Insurance in Canada

Getting covered is quickly and easily done entirely online. 

Fill out our online application in three minutes for a free vacant building insurance quote.  

We compare quotes from over 50 Canadian insurance providers and match you with the right policy.

 

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