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Under the ISO Commercial Property Vacancy Provision (CP 00 10), a covered building is vacant for more than 60 consecutive days before a covered loss occurs. Which is the correct consequence?
ANo coverage applies whatsoever, regardless of the cause of loss producing the damage
BAll coverage for any cause of loss is reduced by a flat 25% of the otherwise-payable amount
CCoverage continues fully unaffected until the building reaches 90 consecutive days of vacancy
Six specified perils are excluded entirely, and all other covered losses are reduced by 15%
Why this is the answer
The ISO Commercial Property Vacancy Provision uses a 60-day trigger. Once vacancy exceeds 60 consecutive days, six perils are entirely excluded: vandalism, sprinkler leakage (absent protection), building glass breakage, water damage, theft, and attempted theft. For all other covered causes of loss, the recovery is reduced by 15% (the insurer pays 85% of what would otherwise be due). A building is 'vacant' when it contains less than 31% of the total square footage used for customary operations.
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