Page 1 of 52
Vacancy & UnoccupancyExam 2026–2027 |
Comprehensive Question Practice Test with
Answers & Rationales| Free Pdf Access
Question 1. Under the ISO commercial property policy (CP 00
10), a building is considered “vacant” if:
A) No people are inside for 30 consecutive days
B) 70% or more of its total square footage is not rented or
occupied for 60 consecutive days
C) 70% or more of its total square footage is not rented or
occupied at time of loss
D) The utilities are disconnected
Answer: C) 70% or more of its total square footage is not
rented or occupied at time of loss
Rationale: ISO defines vacancy based on the percentage of
square footage not occupied or rented at the time of loss, not
,Page 2 of 52
necessarily for a preceding period. However, the 60-day rule
applies to trigger exclusion .
Question 2. Under ISO homeowners policy (HO 00 03), vacancy
means:
A) The dwelling is completely empty of personal property
B) The dwelling is not being lived in by the owner or tenant
C) The dwelling has been unoccupied for 60 days or more
D) The dwelling is under construction
Answer: C) The dwelling has been unoccupied for 60 days or
more
Rationale: The ISO HO 00 03 unoccupancy exclusion defines
vacancy as the dwelling being unoccupied for more than 60
consecutive days immediately before a loss .
,Page 3 of 52
Question 3. True or False: Under most property policies,
“unoccupied” and “vacant” mean exactly the same thing and are
used interchangeably.
Answer: False
Rationale: While often confused, unoccupied typically means no
people are present (though furniture/personal property remain),
whereas vacant usually means substantially empty of both
people and personal property/fixtures .
Question 4. A building that normally requires heat to protect
plumbing can be considered “unoccupied” if:
A) A security guard is on the premises 24/7
B) The building has a “heat maintenance” endorsement
C) The building is still furnished but no one is living there
D) All utilities are shut off
, Page 4 of 52
Answer: C) The building is still furnished but no one is living there
Rationale: Unoccupied means no people are present, but
furnishings and fixtures may remain. Vacant adds the additional
element of being substantially empty of property.
Question 5. True or False: A building under active renovation
with workers present daily is considered vacant.
Answer: False
Rationale: If workers are regularly present and active
operations are occurring, the building is typically not considered
vacant, even if furnishings have been removed for renovation.
Question 6. Under most commercial property policies, the
vacancy provision applies if a building is vacant for more than:
A) 30 days
B) 60 days
Vacancy & UnoccupancyExam 2026–2027 |
Comprehensive Question Practice Test with
Answers & Rationales| Free Pdf Access
Question 1. Under the ISO commercial property policy (CP 00
10), a building is considered “vacant” if:
A) No people are inside for 30 consecutive days
B) 70% or more of its total square footage is not rented or
occupied for 60 consecutive days
C) 70% or more of its total square footage is not rented or
occupied at time of loss
D) The utilities are disconnected
Answer: C) 70% or more of its total square footage is not
rented or occupied at time of loss
Rationale: ISO defines vacancy based on the percentage of
square footage not occupied or rented at the time of loss, not
,Page 2 of 52
necessarily for a preceding period. However, the 60-day rule
applies to trigger exclusion .
Question 2. Under ISO homeowners policy (HO 00 03), vacancy
means:
A) The dwelling is completely empty of personal property
B) The dwelling is not being lived in by the owner or tenant
C) The dwelling has been unoccupied for 60 days or more
D) The dwelling is under construction
Answer: C) The dwelling has been unoccupied for 60 days or
more
Rationale: The ISO HO 00 03 unoccupancy exclusion defines
vacancy as the dwelling being unoccupied for more than 60
consecutive days immediately before a loss .
,Page 3 of 52
Question 3. True or False: Under most property policies,
“unoccupied” and “vacant” mean exactly the same thing and are
used interchangeably.
Answer: False
Rationale: While often confused, unoccupied typically means no
people are present (though furniture/personal property remain),
whereas vacant usually means substantially empty of both
people and personal property/fixtures .
Question 4. A building that normally requires heat to protect
plumbing can be considered “unoccupied” if:
A) A security guard is on the premises 24/7
B) The building has a “heat maintenance” endorsement
C) The building is still furnished but no one is living there
D) All utilities are shut off
, Page 4 of 52
Answer: C) The building is still furnished but no one is living there
Rationale: Unoccupied means no people are present, but
furnishings and fixtures may remain. Vacant adds the additional
element of being substantially empty of property.
Question 5. True or False: A building under active renovation
with workers present daily is considered vacant.
Answer: False
Rationale: If workers are regularly present and active
operations are occurring, the building is typically not considered
vacant, even if furnishings have been removed for renovation.
Question 6. Under most commercial property policies, the
vacancy provision applies if a building is vacant for more than:
A) 30 days
B) 60 days
