Do you need vacant home or property insurance?
Thieves often target vacant properties. In 2019 alone, there were well over 1 million property crimes reported in Canada. Without taking the necessary precautions or having the right insurance in place, you're vacant home could at risk. So yes, you need this coverage if you are planning to leave your home empty or unoccupied for an extended period.
Your existing policy may not include coverage while your property is inhabited, even if you have comprehensive home insurance.
This includes even if you are simply on an extended vacation, have recently purchased a new home, or are doing a renovation. The type of policy you should have will depend on whether your dwelling is considered vacant or unoccupied.
How vacant home insurance works
Most insurance policies have exclusions related to vacant and unoccupied homes. How they are treated varies by the insurance company. Specific clauses are often included in your policy.
It’s common for insurers to include a clause that requires you to notify them about any vacancy for longer than 4 days. Empty properties are considered a greater claims risk. Failure to let insurers know could result in a coverage lapse.
When is my home or property considered vacant for insurance?
Insurance rules and regulations in Canada state that if your dwelling is uninhabited or unoccupied for more than 30 days it will be classified as vacant. When this happens, your insurance will no longer be in effect.
What happens with insurance if the home or property is vacant?
It means if your place is damaged from water, vandalism, glass breakage or another claimable event, you may not be covered if you don't have proper insurance. If it is vacant for more than 30 consecutive days, your insurance could be void. If you plan to leave your home vacant for an extended period, contact your provider to make sure you're policy will cover you.
The 30-day vacancy rule and insurance
The 30-day rule applies to properties left vacant for more than 30 days consecutively. This is the point where insurers may consider your home vacant. At this time, they could void your policy, even if you are making regular payments.
Vacancy permits
Some insurers do not offer policies for vacant homes. In light of this, some insurers offer what is called a vacancy permit. This is a special type of policy or endorsement that you can append to your existing coverage. Speak with your broker to see if a vacancy permit is right for your situation.
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