Vacant Building Risk Calculator

Vacant buildings face higher insurance premiums, vandalism risk, and carry costs. This calculator scores total risk exposure.

Monthly carry cost

Expected vacancy months

Vacant insurance premium (annual)

Damage probability %

Average damage loss

Total risk-adjusted cost

$32,500

Carry cost total

$27,000

Insurance (prorated)

$2,500

Expected damage cost

$3,000

How the math works

Total risk cost = carry + vacant insurance + expected damage (prob × loss). All three add up fast.

Long vacancies are expensive. Getting any tenant — even at discount — often beats carrying empty. Run this calc to see break-even discount for a quick lease.

How to Use

Enter monthly carry cost.
Enter vacancy months.
Enter vacant building insurance premium.
Enter expected vandalism/damage probability.
Read total risk-adjusted cost.

Frequently Asked Questions

Why higher insurance?

Vacant buildings = fire, vandalism, water damage risk. Insurers charge 2-5x standard rates, limit coverage, or exclude vacant policies entirely. Long vacancy = may not be able to insure.

Typical vandalism risk?

Urban vacant: 5-15% probability per month of some loss (copper theft, graffiti, broken windows). Rural: 1-3%. Condemned area: 20%+. Secure with alarm + security service.

How to mitigate?

Temporary occupancy (caretakers, short-term rental), board up windows, alarm + security response, frequent inspections, vacant-building insurance rider. All cost money but less than catastrophic loss.

What counsel should I involve?

Transactional attorney for contracts and guaranties. Environmental consultant for Phase I/II findings. Construction counsel for change-order disputes. Tenant-landlord counsel for habitability, evictions, and relocations. Small LLs try to DIY; institutional operators have a retained attorney on call. The cost of early advice is far less than the cost of a mistake made in its absence.