What percentage of a building must be rented to avoid vacancy issues in insurance?

In the context of insurance, particularly with property policies, many insurance companies stipulate a minimum occupancy level to avoid vacancy issues. A property is often considered "vacant" if it is not rented out to a specific percentage, which may affect coverage and claims.

The percentage of 31% is particularly relevant as it reflects a common underwriting standard where, if a building is rented to at least this proportion, it is typically considered occupied. Insurers often use this threshold to ensure the property is generating income and to mitigate the risks associated with vacant properties, which may be more susceptible to issues like vandalism, deterioration, and theft.

This occupancy percentage helps ensure that the property is actively managed and maintained, which can lead to a reduced likelihood of claims being initiated due to conditions associated with vacancy. Understanding this threshold can be crucial for public adjusters when advising clients on their insurance policies and ensuring they maintain adequate coverage for their properties.