Often we see in property extension endorsements coverage for Newly Acquired or Constructed Property. For Buildings, the policy's covered causes of loss prevail for buildings built on the premises or on a newly acquired premises intended for similar use as described on the Declarations. I am confused as to how the common exclusions for vacancy (VMM, glass, theft, etc.) are addressed during the period of construction. Do those exclusions apply during construction, as the building is vacant during construction? If so, is the Builders Risk the better option rather than depending on the extension endorsement?

Connecticut Subscriber

In the ISO Commercial Property Building and Personal Property Coverage Form, the Vacancy provision specifically states, "buildings under construction or renovation are not considered vacant". Therefore, the vacancy exclusion would not apply, and the vacancy provision that excludes coverage for vandalism, sprinkler leakage, building glass breakage, water damage and theft if building has been vacant for more than 60 days also would not apply to a building under construction or renovation.