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In property insurance, the term 'vacancy' refers specifically to a situation where a property is not occupied by any tenants or residents for a defined period of time. This definition is critical because the status of a property as vacant can significantly affect insurance coverage and risk assessments. For property insurers, understanding whether a building is vacant helps determine the likelihood of potential claims, as vacant properties may be more vulnerable to risks such as vandalism, theft, or damage from weather-related events.

The other options do not encapsulate the essence of vacancy in the property insurance context. For instance, property under contract doesn't indicate whether it’s occupied, while property with active security measures suggests an attempt to mitigate risks, but it still doesn’t define whether the property is being lived in or used. Additionally, property that generates income implies it is occupied and functioning as a rental or business space, which contrasts with the concept of vacancy. Thus, the definition that accurately describes vacancy is one that reflects the absence of occupants for a given duration.