Your regular home insurance policy is meant for a home that is lived in. It is based on the premise that someone is coming and going regularly, has lights on at night, and is available to respond quickly to burst pipes, for instance. Without someone living in and maintaining the property, the home faces a higher risk of damage, injury or burglary.
Most home insurance policies typically have a 30-day unoccupancy clause. This means if your property is unoccupied for over 30 days, especially if you haven’t notified your insurer, your home insurance policy will likely be void and any claims will be denied.
‘UNOCCUPIED’ vs ‘VACANT’
Although they sound synonymous, the terms ‘unoccupied’ and ‘vacant’' have different meanings for insurance purposes. Generally speaking, an unoccupied home is one that is suitable for living in immediately and the occupant intends to live in it/return to it in the near future. Utilities are typically functioning and it usually contains personal contents/furniture. This could be a temporary leave of absence such as an extended vacation.
Many insurers will allow unoccupied homes to extend past the 30-day rule (as long as your insurer is aware), but it's a good idea to have someone check on your home regularly during the unoccupancy period.
On the other hand, a vacant home is one that an occupant has left with no intention of returning to. Unnecessary utilities are usually disconnected and there likely aren’t any personal contents/furniture in it. A primary residence or investment property that is sitting on the market uninhabited, waiting to either be rented or sold, is considered a vacant home.
Not all insurers offer coverage for vacant homes due to the additional risk that comes with them. Depending on the reason the home is empty (for sale, for rent, death, etc.), some insurers may offer a special insurance policy or a vacancy permit to protect the property. Be aware that this type of policy/permit doesn’t provide anywhere near the same extent of coverage that a regular home insurance policy does. For instance, vandalism, flood or window damage may not be covered because of the high risk of occurrence for insurers.
A vacant home insurance policy will also come at a much higher premium than a regular one, even though there is less coverage. The cost can vary depending on factors such as length of vacancy, reason for vacancy, time between property check-ins, etc.
Here are some good measures to take when leaving a property unoccupied (some of which may be required by an insurer as a condition of providing a vacant home policy). By far, the best precaution is to be checking (or have a neighbour checking) the property regularly and doing the following:
- Make the home look occupied (tire tracks, move things around outside)
- Pick up mail, newspapers and any litter
- Cut grass/shovel snow
- Keep blinds closed
- Install a timer to have lights come on for a while in the evening
- Lock all windows and doors and consider installing a security/camera system that allows you to monitor the property remotely (motion sensing light/camera ideal)
- Check HVAC & water systems are functioning properly (consider shutting off main water supply to prevent leaks especially during freezing temperatures)
Whether you feel confident or unsure about what leaving your unoccupied or vacant home means for you, it is always best to contact your insurer as soon as you know you will be leaving for any extended period of time - definitely long before that typical 30-day mark. You can discuss what options they provide, if any, or source out where you might be able to get appropriate protection. ~ Laura
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