diff --git a/template.py b/template.py
index 2985a70..f4eeba5 100644
--- a/template.py
+++ b/template.py
@@ -35,10 +35,14 @@
     # INSERT FLAGS HERE
 ]
 
+def DirectoryOfThisScript():
+  return os.path.dirname( os.path.abspath( __file__ ) )
+
 
 # Set this to the absolute path to the folder (NOT the file!) containing the
-# compile_commands.json file to use that instead of 'flags'. See here for
-# more details: http://clang.llvm.org/docs/JSONCompilationDatabase.html
+# compile_commands.json file to use that instead of 'flags'. By default it is
+# set to the directory of this script. See here for more details:
+# http://clang.llvm.org/docs/JSONCompilationDatabase.html
 #
 # You can get CMake to generate this file for you by adding:
 #   set( CMAKE_EXPORT_COMPILE_COMMANDS 1 )
@@ -46,19 +50,17 @@
 #
 # Most projects will NOT need to set this to anything; you can just change the
 # 'flags' list of compilation flags. Notice that YCM itself uses that approach.
-compilation_database_folder = ''
+compilation_database_folder = DirectoryOfThisScript()
 
-if os.path.exists( compilation_database_folder ):
+if os.path.exists( compilation_database_folder ) and \
+   os.path.exists( os.path.join( compilation_database_folder, 'CMakeLists.txt' ) ) and \
+   os.path.exists( os.path.join( compilation_database_folder, 'compile_commands.json' ) ):
   database = ycm_core.CompilationDatabase( compilation_database_folder )
 else:
   database = None
 
 SOURCE_EXTENSIONS = [ '.C', '.cpp', '.cxx', '.cc', '.c', '.m', '.mm' ]
 
-def DirectoryOfThisScript():
-  return os.path.dirname( os.path.abspath( __file__ ) )
-
-
 def MakeRelativePathsInFlagsAbsolute( flags, working_directory ):
   if not working_directory:
     return list( flags )