The insured has a Building and Personal Property Coverage Form, CP 00 10 10 90. The business is described in the Declarations as a medical office.

The insured had a theft loss. The insurance adjuster assigned to the claim conducted an investigation and found out that the insured premises had been used for more than six months as dead medical file storage. The doctor who operated the medical office had died.

The insured has been selling the office equipment for the last sixth months, and at the moment of loss there were only a few of chairs and a cabinet left. The premises has also had a "for rent" sign outside the building for the past sixth months. There is no medical business being conducted at the premises.

The carrier states that this loss is not covered because the insured premises has been vacant for more than sixty days. The form established that a building is vacant when it does not contain enough business personal property to conduct customary operations. A few chairs and cabinets are not enough to conduct a medical office operation. The carrier argued that for more than sixty days there was not enough medical office equipment to conduct a medical office operation and that for the past sixth months the premises has been use only as a dead medical file storage. That the building has had a "for rent" signed for more than sixty days clearly proves that there were no customary medical business operations being conducted at the premises.

On the other hand, the insured agent stated that the premises was not vacant because it has electricity, water, some chairs, and cabinet and because the premises is being used as a dead file storage. Also, a person visited the premises every week.

Puerto Rico Subscriber

The building would be considered vacant if there is not enough equipment to conduct normal medical operations. If the only property on premises is primarily for storage purposes, and that is not the insured's customary operations, then the property would be considered vacant. If a doctor were present, could the office, as it existed at the time of the loss, be used and operational as a medical office? If not, there was not enough business personal property on premises to conduct customary operations.

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