An empty building still needs coverage.
Property and liability for vacant, unoccupied and under-renovation commercial buildings, for 3, 6 or 12 months or until the building is leased.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed November 2026 · How this page is researched
Vacancy changes your policy
Most commercial property policies limit or remove coverage for vandalism, water damage and glass breakage once a building has been vacant for a set period, commonly 60 days.
A vacant building policy is written for that situation, and can move to standard coverage once tenants move in. I place vacant buildings with carriers that write short terms and renovations.
- PropertyFire, wind and other covered causes.
- LiabilityInjuries to trespassers and visitors.
- Short terms3, 6, 9 or 12 months.
- RenovationBuildings being repaired or converted.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Building: address, type, year built and square feet.
- Vacancy: how long and why.
- Security: utilities, locks and inspections.
- Plans: lease, renovate, sell or demolish.
- Value: building value.
- Ownership: personal, trust or LLC, and any lender.
San Francisco asks for your policy
San Francisco wants to see the insurance. DBI's registration packet quotes Building Code Section 103A.4.1: a building counts as vacant or abandoned if it is unoccupied and unsecured, unoccupied and secured by boarding or similar means, unoccupied and unsafe, unoccupied with multiple code violations, or has been unoccupied for over 30 days. Section 103A.4 requires the owner to register the building with the Department of Building Inspection within 30 days after it becomes vacant or abandoned, and to renew at the beginning of each calendar year.
The registration must come with one of two things:
- A copy of the insurance policy naming the fire and liability carrier, policy number, fire and liability coverage amounts, and the agent's name and phone. The declarations must include the property address and expiration date, and all coverage is subject to the Director's approval.
- An owner's affidavit that the property is not insured, noting the last date of coverage and acknowledging the potential risks of activities on an uninsured property.
DBI's summary of the ordinance also lists upkeep duties: keep the interior safe from weather and plumbing leaks and free of garbage, debris and pests; keep the exterior sound, from roof and gutters to windows, stairs and decks; remove trash and graffiti; prevent criminal activity and trespass; and shut off utilities not needed for building maintenance. A sign no smaller than 8-1/2 by 11 inches at the front must give the owner's and any authorized agent's name, address and phone, plus the lender's if a notice of default or foreclosure has been recorded.
Other cities run their own versions. For a San Francisco building, I check that the declarations show the address and expiration date, and that both the property and liability sides are on file.
Bought at foreclosure? Civil Code 2929.3
California puts a specific duty on whoever takes title to an empty home through foreclosure. Civil Code 2929.3 says a legal owner must maintain vacant residential property bought at a foreclosure sale once the sale is deemed final, or acquired through foreclosure under a mortgage or deed of trust.
"Failure to maintain" means failing to care for the exterior, including:
- Letting foliage grow so much it lowers the value of surrounding properties
- Not acting to keep trespassers or squatters from remaining on the property
- Not acting to stop mosquito larvae from growing in standing water, or other conditions that create a public nuisance
A local government that chooses to fine must first send a notice describing the conditions. The owner gets not less than 14 business days to start fixing them and notify the agency, extended by 10 business days on request, then no less than 16 business days to finish. A shorter notice is allowed when a condition threatens public health or safety. After the cure period, fines can run up to $2,000 a day for the first 30 days and up to $5,000 a day after that. The agency must allow a hearing, must consider timely good-faith efforts, and can't fine under both this statute and a local ordinance. Collected fines go to local nuisance abatement programs.
The statute applies only to residential property. If you are buying a house at a trustee sale, line up vacant home coverage before the sale is final, and set up exterior upkeep right away. A standard homeowners form may not fit an empty house; here is why.
Vacant building insurance, answered
Does my current policy cover a vacant building?
Often only partly. Many policies restrict coverage after 60 consecutive days of vacancy. Check your vacancy clause.
Can I insure a building during renovation?
Yes. Tell me about the work so the policy fits, and whether builder's risk is needed.
How short can the policy be?
Three months is common. Terms of 6, 9 or 12 months are also available.
What happens when I find a tenant?
The building moves to a standard commercial property or lessor's risk policy.
Do I have to register a vacant building in San Francisco if I have a building permit?
San Francisco DBI says a building permit for repair, rehabilitation or construction of the vacant unit is valid for one year from the date the initial permit was issued and exempts you from registration for that period. DBI accepts a copy of the signed Job Card as proof of permit activity.
How do I get my building off San Francisco's vacant building list?
If you recently acquired a listed property and it is now occupied, DBI asks for your latest PG&E, Recology and water statements showing the address, plus a current lease if rented, or a property insurance policy showing the address and expiration date if you live there.
Do you offer vacant commercial building insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in all 50 states and Washington, DC and places policies there directly. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Official sources
- San Francisco DBI: Annual Registration of Vacant or Abandoned Building (Ordinance 194-09, SFBC 103A.4) application packet
- Los Angeles Department of Building and Safety: Statement of Intent (vacant and secured or unsecured structures)
- Los Angeles Department of Building and Safety: Vacant Building Abatement
- Cal. Gov. Code 38773.1 (California Public Law)
- Cal. Gov. Code 38773.5 (California Public Law)
- Cal. Gov. Code 38773.7 (California Public Law)
- Cal. Civ. Code 2929.3 (California Public Law)
- U.S. Fire Administration, Topical Fire Report Series: Vacant Residential Building Fires (2013-2015), Vol. 18, Issue 9, January 2018
Send the building. I'll shop it.
The address, how long it's been vacant and your plans are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued. Some policies may be placed with nonadmitted (surplus lines) insurers, which are not members of the California Insurance Guarantee Association (CIGA).
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(877) 711-4545Answered 24/7 · CA License #4348151
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