Coverage Analysis

Vacancy Exclusions in a High-Vacancy Apartment Portfolio

Reinstating Comprehensive Coverage Without Additional Costs

Confidential Client

Multi-Family Residential Portfolio6 properties, 1,000+ units Midwest Region, USA

The Challenge

The client managed a portfolio of high-vacancy apartment buildings, some of which lacked critical coverage due to a vacancy exclusion clause. They were unaware that this exclusion left several properties exposed to significant risks.

Vacancy exclusions in existing policies removed protection for key perils

High-vacancy rates across the portfolio heightened exposure

No coverage for excluded causes of loss, including vandalism and water damage

Potential financial losses from uncovered claims

Our Solution

Our team conducted a portfolio-wide policy review and successfully restored full coverage for the impacted buildings.

Policy Review and Exclusion Identification

Analyzed all existing policies to identify the vacancy exclusion and assess its impact on coverage.

Negotiation with Carriers

Collaborated with underwriters to reinstate coverage for excluded causes of loss across all properties.

Cost Neutral Adjustments

Ensured coverage was added back at no additional cost to the client.

The Results

The client’s portfolio was fully protected from excluded risks with no increase in premiums.

100%

Coverage Restoration

Reinstated coverage for vandalism, water damage, and other excluded perils

$0 additional premiums

Cost Savings

Achieved full coverage restoration at no added cost

Significant

Risk Mitigation

Reduced potential uncovered losses across the portfolio

Takeaways

Vacancy exclusions can be a hidden risk. Adding a vacancy provision endorsement to your policy can add back coverages that would not be available if missing.

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