Alabama Property and Casualty Practice Exam

A building insured under a BOP loses vandalism coverage after how many days of vacancy?

1. 30 days

2. 45 days

3. 60 days

4. 90 days

The correct answer is: 60 days

In the context of a Businessowners Policy (BOP), coverage for vandalism is typically forfeited after a building has been vacant for a specific period of time. The correct answer, which states that vandalism coverage is lost after 60 days of vacancy, reflects standard insurance practices. This provision is included to address the increased risk of vandalism in properties that are unoccupied, as vacant buildings are often more susceptible to damage and criminal activity. Under most BOP agreements, if a building is considered vacant for 60 consecutive days, the insurer may exclude coverage for vandalism, as the likelihood of damage occurring without any occupants or security measures increases. This policy serves as a risk management strategy for insurers, helping them mitigate potential losses related to unattended properties. Understanding this timeline for coverage loss is crucial for business owners to ensure they maintain adequate insurance protection, especially during periods when their property may be unoccupied. If a business owner expects their property to be vacant for an extended period, it is advisable to consider different coverage options or inform their insurer to avoid any gaps in protection.