A commercial building has been vacant for 75 days when a vandal breaks in and causes $30,000 in damage. The commercial property policy contains a standard vacancy clause. Which outcome is most accurate?

Why this is the answer

Under ISO commercial property forms, a tenant's building is vacant when it lacks enough business personal property to conduct customary operations, and an owner's building is vacant unless at least 31% of its floor area is rented or used for customary operations. After more than 60 consecutive days of vacancy, the insurer will not pay for vandalism, sprinkler leakage (unless the system was protected against freezing), building glass breakage, water damage, theft or attempted theft, and it reduces payment for any other covered loss by 15%. These specific perils are suspended — not all coverage. The building does NOT need to be 100% empty to trigger the clause; the 'sufficient personal property' standard matters. The insurer does not retroactively cancel coverage; it simply excludes these enumerated perils from the vacancy date forward. Per FL Outline §II, vacancy/unoccupancy is a tested Property Terms concept.