Why might an insurer refuse to insure a vacant building?

An insurer may refuse to insure a vacant building primarily due to the high likelihood of vandalism. Vacant properties are often seen as attractive targets for vandalism, theft, and other types of damage, which present a higher risk to insurers. The absence of occupants can also lead to delayed detection of issues like leaks or fires, further increasing the risk profile of the property. Insurers assess risk carefully, and the potential for significant losses associated with vandalism or neglect is a major factor in their decision-making.

When a property is unoccupied, the absence of regular maintenance and supervision can exacerbate issues that may not be present in an occupied building, leading insurers to view vacant buildings as a liability they would prefer to avoid. This heightened risk perception is a key reason for an insurer’s refusal to provide coverage for such properties.