As a broker, we receive many calls from policyholders who unfortunately have to deal with their insurer canceling their home insurance policy because their residence is becoming vacant or unoccupied. There are several scenarios that can lead to a house being unoccupied, such as purchasing a new property, moving, or inheriting a home following the death of a loved one. To ensure that your vacant home is properly insured, Assurances Multi-Risques would like to share its best advice with you!

What is the difference between a vacant and unoccupied house?

Vacant house : A vacant house means that the residents are away for a specific period of time. This indicates that they intend to return to live in their residence.

Vacant house : A vacant house means that the residents have left the premises with no intention of returning, regardless of whether their belongings remain there. Please note that a newly built home may also be considered vacant if it is unoccupied between the completion of construction and the time when the residents move in.

How to properly insure a vacant or unoccupied home?

Did you know that your home insurance policy contains an exclusion for vacant homes? This clause states that any damage occurring while your home has been vacant for more than 30 consecutive days, to your knowledge, is not covered. This means that if you had a claim, your insurance company would refuse to compensate you. This is why it is important to notify your home insurer or insurance broker of any change in the use of your residence, otherwise you will not be covered.

Once you have notified your insurer that your home is vacant, they reserve the right to accept or refuse to insure your vacant home. Those who accept will add an authorization endorsement or vacancy permit to your contract, allowing you to leave your home vacant for a certain period of time. The home insurer will charge you an additional premium and will exclude vandalism, malicious acts, water damage, and broken windows.

A higher premium linked to higher risks

Obviously, when your home is vacant, you should expect certain reductions in coverage, as mentioned above. Insurance companies are not very comfortable insuring vacant buildings because the risks of fire, theft, and vandalism are higher, in addition to generating more civil liability risks. To learn more and avoid insurance problems, we strongly advise you to contact an independent insurance broker who works with several home insurers. Specializing in insurance for vacant or unoccupied homes, they will be able to advise you and, above all, find insurers who specialize in this type of coverage.

In the meantime, here are a few insurance tips that will help you sell your vacant property faster. By keeping your home well maintained, you will increase your chances of selling quickly and avoid paying insurance for two homes at the same time.

Some insurance tips

Visit your vacant residence regularly or have a friend or concierge visit the house;
Turn off your water supply and drain the pipes, as any water damage is excluded from your insurance policy when your home is vacant.
Keep the heating on during the winter season;
Ensure that your entrance is cleared of snow during the winter;
Maintain your lawn regularly during the summer;
Opt for automatic lighting activation;
Keep the curtains on the windows to maintain some privacy.