Owning a property is one of the largest investments most people make. To protect that investment, comprehensive property insurance becomes essential. However, when a home sits empty, the standard insurance coverage may no longer apply. Whether selling an inherited home, undergoing major renovations, or temporarily moving out, leaving a property vacant introduces unique risks and responsibilities. Many homeowners mistakenly assume that their current policy will continue to provide full protection, only to face a harsh reality when a loss occurs.
Most home insurance policies include a clause known as a vacancy exclusion. This clause means that if a property remains vacant beyond a certain period—often 30 to 60 days—coverage for specific perils may no longer apply. Standard policies typically reduce or void coverage for losses such as vandalism, theft, or water damage once the insurer considers the home vacant. When exploring a property insurance rate in Ontario, it becomes critical to examine what the policy does and does not cover, especially if the property may sit empty.
Insurance providers draw a clear line between a "vacant" and an "unoccupied" property. The distinction plays a key role in determining whether your current insurance remains valid or whether additional coverage becomes necessary.
In this case, the residents are temporarily away but intend to return. The home still contains furnishings and personal belongings, and utilities remain active. Examples include homes left empty during extended vacations or seasonal cottages during off-months. Insurers often allow a property to remain unoccupied for a limited time—typically up to 60 days—with prior notice.
A vacant home stands entirely empty, with no residents and minimal or no furnishings. There is no intent for immediate re-occupancy. This includes homes listed for sale, inherited properties, or houses undergoing major renovations that make them uninhabitable. In such situations, most insurers limit coverage after the home sits vacant for a defined period.
The key differences lie in the presence of belongings and the intention to return. Property owners must always review the policy language and consult with their broker to ensure the right level of protection.
Standard home insurance policies assume regular occupancy. When a property becomes vacant, its risk profile changes significantly. Insurers respond by limiting or removing coverage to avoid large payouts for undetected losses.
A vacant property increases the likelihood of the following issues:
These elevated risks contribute to higher property insurance rates in Ontario for vacant homes and make specialized coverage a necessary safeguard.
Vacant homes face increased exposure to several threats:
Due to these risks, insurers often offer limited coverage under a standard policy unless the homeowner acquires a specific form of protection.
To bridge the coverage gap, property owners must consider one of the following insurance solutions:
Vacant home insurance usually costs more than regular home insurance due to the increased risks. Coverage may include:
Insurers may exclude certain perils or offer them only as add-ons. For example, sewer backup or overland flooding may not appear in the base policy. Factors such as the property’s condition, location, duration of vacancy, and available security measures all influence the insurance rate.
Property owners can take several steps to protect a vacant home and meet insurance requirements:
Begin Insurance helps homeowners in Ontario find the right property insurance—whether for a vacant home, rental property, seasonal cottage, or secondary residence. Our team compares top providers across Canada to deliver tailored policies at competitive rates.
We also review existing policies to identify potential gaps, offer solutions for high-value items and collections, and provide options for sewer backup, overland flood, and additional liability through umbrella insurance.
Posted Jul 4, 2019