Vacant Building/Builder's Risk
Buildings that are vacant or under construction need special kinds of policies for adequate protection.
A vacant building, which is defined as one that is unoccupied for 60 days or more, needs a special policy which should be purchased in 2 parts. The 1st part covers the property building itself, while the 2nd provides premises liability coverage for bodily injury. Often, these policies may be limited to fire and other basic protections, as opposed to the full coverage found in good homeowner's policies. Claims are often handled on an ACV basis, which takes depreciation and coinsurance into account. They also tend to be relatively expensive.
A building under construction needs a special variation of the vacant building policy, and often will provide coverage for many of the perils covered under a regular home policy. These policies also offer tool and building material coverage, as well. Coverage can be for the existing structure, the new portions being built or renovated, or the combined whole.
For both vacant and builder's risk policies, there often is a penalty fee for early cancellation.
Often it is possible for liability coverage to be extended from a home policy over vacant land or buildings.