Vacant Home Insurance Explained: What Every BC Property Owner Needs to Know Before Leaving a Home Empty

Most homeowners don’t spend much time thinking about the vacancy clause in their home insurance policy—and that’s understandable. Many of the situations that create vacancy aren’t always obvious, but when they do arise, they can have a significant impact on your insurance coverage, including invalidated certain coverages or even voiding your policy entirely. That’s why at HG Insurance Agencies we do our best to educate clients on how vacancy works. 

A home is deemed “vacant” in an instant—it isn’t something that happens gradually over time. Once the occupant has moved out and until a new occupant has taken up residence, the property will usually be considered vacant for insurance purposes. Right from the start of vacancy important coverages such as water damage, theft, vandalism, malicious acts, and glass breakage may be affected, depending on your policy.

Whether you’re purchasing a new home but delaying your move-in, selling your current home after you’ve already relocated, managing a rental property between tenants, or administering an estate, it’s important to understand when vacancy begins and how it may affect your insurance.

Understanding the situations that create a vacancy—and speaking with your broker before they arise—can help you avoid unexpected gaps in coverage when you need it most.

Key Takeaways

• A home generally becomes vacant as soon as the occupant has moved out and no new occupant has taken up residence.
• Coverage restrictions for perils such as water damage, theft, vandalism, malicious acts, and glass breakage often apply immediately upon vacancy.
• Simply leaving furniture behind, maintaining utilities, or checking on the property does not mean the home is still considered occupied.
• The 30-day period found in many insurance policies often relates to additional vacancy provisions or vacancy permit requirements—not the definition of vacancy itself. 
• In most cases, once the 30-day mark is reached your entire policy will be null and void when your insurer has not been notified.
• Always speak with your insurance broker before a property becomes vacant so you understand how your specific policy will respond.

What Does “Vacant” Mean?

For insurance purposes, a home’s occupancy status isn’t determined by whether furniture is still inside or whether the lights are on.

A home is generally considered vacant when the occupant has moved out and no new occupant has taken up residence, regardless of the presence of furnishings.

One of the strongest indicators of occupancy is that someone is regularly sleeping at the home as their primary residence, seasonal residence, or secondary residence.
If no one is living there, the property may be considered vacant—even if someone visits every day.

For example, a home may still be considered vacant when:

• Furniture remains inside.
• Utilities are still connected.
• The owner visits regularly.
• Renovations are taking place.
• Friends or family check on the property.
• Contractors are working at the home.

These activities help protect the property, but they do not necessarily establish occupancy for insurance purposes.

When Does Vacancy Begin?

Vacancy begins when normal residential occupancy ends.

For homeowners, this is often the day they move out. It could also be the date that the final occupant passes away or is deemed medically unfit to return home – as the intention to return has ended. For landlords, vacancy generally begins as soon as the landlord becomes aware that the tenant has moved out and no replacement tenant has taken possession.

Many people mistakenly assume a property isn’t vacant until it has been empty for 30 days. In reality, the insurance implications often begin much sooner.

The 30-day period commonly found in insurance policies typically relates to the requirement for specialized vacant home coverage. The exact wording varies by insurer and policy.

Common Situations That Create a Vacancy

Vacancy can arise in many everyday situations.
Some of the most common include:

• Purchasing a new home but delaying your move-in date.
• Moving into a new residence while your previous home remains listed for sale.
• A rental property between tenants.
• Changing a property from tenant-occupied to owner-occupied before the owner has actually moved in.
• Converting a home to seasonal or recreational use before occupancy begins.
• An estate property after the owner’s passing.
• A homeowner permanently moving into long-term care or being medically deemed unable to return home.
• A newly completed home awaiting occupancy.
• A home under construction after completion, or after building activities have ceased for an extended period, subject to the policy wording.

Each of these situations can affect insurance coverage, even if the vacancy is only temporary.

Why Does Vacancy Matter?

Insurance is based on risk, and vacant homes present a different risk than occupied homes.
When someone is living in a home, problems are usually discovered quickly.

A leaking pipe is shut off.
A broken window is noticed.
An electrical issue is reported before it causes significant damage.
When nobody is living there, even a relatively small problem can become a major insurance claim before anyone discovers it.

Vacant homes are also generally more susceptible to theft, vandalism, and malicious damage, because there is no one regularly occupying the property.

For that reason, vacant homes are charged higher premiums by insurers and reduced coverages are made available. 

What Coverages Are Commonly Affected?

Every insurer has its own policy wording, but vacant homes commonly have restrictions affecting:

• Water Damage
• Theft
• Vandalism and Malicious Acts
• Glass Breakage
• Contents Coverage limited to Major Appliances only

Questions to ask your broker about your policy

Before a rental becomes vacant, consider asking:

• When does my insurer consider the property vacant?
• What coverages change?
• Is a vacancy permit available?
• Are regular inspections required?
• Will planned renovations affect coverage?

Reviewing these questions before a vacancy occurs is much easier than addressing them after a claim.

Temporary Absences Are Different Than Vacancy

A home does not automatically become vacant simply because you’re travelling or away for an extended period.

However, there is one clause in most homeowner’s policies that it is important to be aware of, and that is the freezing exclusion clause. 

Many policies state that if all occupants are away from the residence during the “regular heating season” for 96 hours (four days) or longer, damage caused by freezing—including resulting water damage—may not be covered unless certain protective measures have been taken.

Common options include:

• Shutting off the water supply and draining plumbing and domestic water containers.
• Having a competent person enter the home daily to confirm that heat has been maintained.
• Installing a professionally monitored water detection system with an automatic water shut-off device.

Policy wording varies. Some insurers use a different time period. Others may be more strict (the owner must ensure that heat is maintained), or more lenient (the owner must only have attempted to ensure adequate heating by turning the heating system on and not purposefully turning a heating system off). 

Because these requirements differ between insurers, it’s important to understand the conditions that apply to your own policy before leaving your home during the heating season.

Seasonals, Snowbirds and Working Away

A seasonal residence is expected to have periods of absence. You should consult with your broker to find out if there is a minimum requirement for occupying your home, as well as winterizing requirements under your policy. Many insurers will offer better coverage to homes that are occupied year-round.

When you go on extended vacations or work away from home regularly it is best to check with your insurer to find out if your home still meets the minimum requirements for a homeowner’s policy. If you have more than one residence that you consider “home,” or if you occupy the home less than 60% of the time during your policy term those are good indicators that it’s time to have a discussion with your broker.

What about House-sitters? 

Many people will opt to bring in a house-sitter when their home will be unoccupied for a period of time. While this reduces the insurance risk compared to leaving a home vacant, a new scenario may have been created in that your home may be considered “rented.” 

If you want to hire a house-sitter they must be hired from a company that offers this service for hire, and the house-sitter must be both insured and bonded.

More commonly we find that people will have a trusted friend or family member stay as a house-sitter. Unfortunately, even though these people may not be paying rent, once your home is being lived in by a third-party, your home is no longer an “owner-occupied” dwelling, and a rented dwelling situation will most likely apply, requiring a change in your policy. If the house-sitter is a Family Member your broker may be able to work with you to add this person onto the policy as an additional insured, but non-relatives will almost always be classed as renters. Either way, if someone new moves into your home it’s time to call your broker.

Should you need to change your policy to a rented dwelling you may lose all coverage for your contents other than the major appliances.

Do You Need Vacant Home Insurance?

In most cases if your home is not being actively lived and slept in for more than 30 consecutive days, then yes, you will require specialized vacant home insurance. This may take the form of adding a vacancy permit to an existing policy, changing an existing policy to vacant occupancy and coverage, or purchasing a separate specialized vacant dwelling policy.

This is commonly required when:

• A home is being sold after the owners have moved out
• An estate property will remain empty
• The owner is transitioning to a care home
• Major renovations are underway
• A newly purchased home will not be occupied immediately
• A rental property is expected to remain vacant for an extended period

Specialized vacant home coverage is designed to address the increased risks associated with an unoccupied residence while helping preserve important insurance protection.

Which vacant dwelling coverage applies to me?

You may have noticed that there are multiple ways to obtain vacant home coverage. You will need to speak to a broker to determine what options are available on your existing policy (if you have one) or whether a separate policy will be required. 

The three options are:

1. Adding a Vacancy Permit – Adds permission for vacancy to an existing policy for a specified period and subject to an additional fee.The underlying policy type, occupancy, wordings and coverages are only amended by the standard vacancy exclusions (water damage, vandalism & malicious acts, theft, and glass breakage), but the policy is otherwise unchanged, and eligible policy discounts continue to apply.While once a common method of insuring vacant homes, in the past decade many insurers now offer vacancy permits only under very limited circumstances and short durations.
2. Amending a policy to “Vacant” – When a previously occupied home becomes vacant and you already have a policy in place you may be able to change your existing policy into a vacant dwelling policy.The policy type, occupancy, and coverages are amended to the Insurers designated coverage form, and the premium is rated independently of the original policy. Offered coverages will be restricted, and typically furniture and contents are not insured. Limited policy discounts may apply, and coverage may only be available up to the expiry of the policy or up to one year. A home is typically still insurable for Replacement Cost Coverage (if previously eligible). 
3. Specialized Vacant Dwelling Policy – A separate, standalone policy through an insurer that specializes in providing Vacant Dwelling Coverage.You may be required to purchase this policy when you do not have existing coverage in place or when the length of vacancy has exceeded what your previous insurer allowed. If the home is going to be occupied again these policies cannot be changed to other policy types and will need to be cancelled. More frequent home inspections are required (typically every 24, 48 or 72 hours). Coverage is often similar to that under a vacant dwelling form offered by standard home insurers; however, most homes will only be insured on an Actual Cash Value basis. This coverage is typically available for up to 2 or 3 years from the start of vacancy. Periods of vacancy longer than this may be difficult to find coverage for.

A Checklist Before Leaving a Home Vacant

Before a property becomes vacant, consider taking the following steps:

✓ Contact your insurance broker.

✓ Confirm when your policy considers the home vacant.

✓ Review any immediate coverage restrictions.

✓ Ask whether vacancy coverage is required.

✓ Arrange any inspections required by your insurer.

✓ Winterize the home if necessary.

✓ Maintain or shut off utilities as recommended by your insurer.

✓ Secure all doors and windows.

✓ Keep records of inspections and maintenance visits.

Protect Your Property Before It Becomes Vacant

Every vacancy situation is different.

Whether you’re moving, selling a home, renovating, managing a rental property, administering an estate, or helping a family member transition into long-term care, understanding how your insurer defines vacancy is an important part of protecting your investment.

At HG Insurance Agencies, we help homeowners across British Columbia understand how vacancy rules apply to their individual circumstances. Because policy wording differs between insurers, the right advice depends on your specific situation.

 

If your home may become vacant—even for a relatively short period—contact our team before it happens. A brief conversation today can help prevent an expensive surprise tomorrow.