A more thorough explanation:

A vacancy clause is a special endorsement in an insurance policy that allows a property to remain unoccupied beyond the period specified in the original policy. This clause ensures that the insurance coverage remains in effect during policy extensions, often for a reduced amount.

For example, let's say you own a rental property that has been vacant for several months. If your insurance policy has a vacancy clause, your coverage will still be in effect even though the property is unoccupied. However, the coverage amount may be reduced during this time.

Another example is if you are renovating your home and have to move out temporarily. With a vacancy clause, your insurance policy will still cover your property even though it is unoccupied during the renovation period.

These examples illustrate how a vacancy clause can provide insurance coverage for unoccupied properties or properties undergoing renovations, even if they exceed the original policy's occupancy period.