Hurricane Irene struck the area, and five of the insured's properties were damaged. Two were not rented but were in various states of repair. The carrier took the position that the properties were vacant and reduced the ACV payment by 15 percent, per the vacancy provision.

We take the position that the covered property, (per A. 1. Covered property, (5.)not covered by other insurance, and under “alterations and repairs”) was undergoing repairs and renovation at the time of loss, and the owner should be indemnified for the repair of the storm related damage, and the 15 percent deducted be paid.

North Carolina Subscriber

We agree with your reading of the vacancy provision. If the houses were in fact being prepared for rental and in the course of repairs at the time the storm caused damage and are covered property under the policy, the exception for buildings under construction would apply. The policy states that a building is considered vacant when it does not contain enough business personal property to conduct customary operations. Even if that is true for the unrented houses, if they are under construction, the exception applies.