Does the ISO Vacancy Permit form CP 04 50 07 1988 give back all the coverages (vandalism, sprinkler leakage, unless you have protected the system against freezing, building glass breakage, water damage, theft, attempted theft), or is it only providing coverage for vandalism and sprinkler leakage?
New Hampshire Subscriber
The vacancy permit extends the period of time that a building can be vacant and still be covered under the policy. There should be a period of time for this vacancy permit to be in effect. In the endorsement you provided, there is no period of time indicated, so it will be in effect for the policy period. In effect, this is giving the insured coverage without a vacancy penalty for this building.
A. The vacancy loss condition doesn't apply to loss at premises 1, building 1 as described in the schedule or in the declarations. The vacancy loss condition considers the building vacant after 60 consecutive days and for vacant buildings the coverage is reduced by 15%. So, this building may remain vacant without penalty for the policy period.
B. If there is an 'x' checked under the vandalism and/or sprinkler leakage excepted causes of loss, then these causes of loss will not be covered. Since neither of these coverages are checked, then the vacant building will be covered for vandalism and sprinkler leakage.
Christine G. Barlow, CPCU
Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.