How Does Unoccupied Home Insurance Work?

Are you planning on travelling for an extended period of time? Do you own a house/property that is usually rented but is currently uninhabited? If you, so should speak with your insurance provider or Surex insurance advisor about how to find the right solution.

Depending on the length of the period of time your home is unoccupied, your insurance advisor may suggest investing in vacant or unoccupied home insurance.

If you're not familiar with these types of insurance, you're likely asking yourself questions like, "what's the difference between an unoccupied home and a vacant home?" and "how are unoccupied and vacant home insurance different from one another?".

We answer these questions (and many more) in the following paragraphs.

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Continue reading to learn more about the difference between vacant and unoccupied home insurance in Canada.

What are vacant homes and how are they different from unoccupied homes?

In the Canadian insurance industry, the terms "vacant" and "unoccupied" are similar but, at the same time, quite different from one another.

Let's take a closer look at what sets them apart:

What is an unoccupied home?

An unoccupied property is a living space that can be inhabited but is currently not being lived in. For example, if you take a trip for several weeks or months, your home will be deemed "unoccupied" until your return.

Most Canadian home insurance companies allow policyholders to temporarily leave their properties for 30 days to temporarily leave their properties for up to six months, and once its over 30 days they need to apply a vacancy permit— or more under certain circumstances — given that the specific requirements are met during that time.

Specific requirements include:

• Water must be turned off
• All appliances disconnected
• Heat left on during heating season
• Someone check on the home regularly (some carriers require every 72 hours)

What is a vacant home?

In contrast, a vacant home is a property that you do not intend to live in or is currently unfit for residents (your family, tenants, etc.).

A typical example of a vacant home is a rental property that has no residents, furnishings, or active utilities. If you own a vacant home, you will need to invest in vacant home insurance in order to financially protect your investment.

Vacant home insurance vs unoccupied home insurance in Canada — What's the difference between the two options?

Vacant home insurance is a niche type of property insurance add-on (also known as an insurance endorsement) that financially protects vacant homes from a limited range of unexpected risks and perils. In most cases, vacant home insurance does not cover specific risks like:

• Broken windows
• Burglaries/vandalism
• Flood damage

Even though vacant home insurance is a relatively modest form of coverage, it's still your best line of defence against unexpected risks and perils if you own a vacant property in Canada.

On the other hand, unoccupied home insurance is less cut and dry. Depending on your home insurance company and the period of time you're away, you may not need to invest in any additional forms of financial protection. 

As a reminder, most home insurance companies in Canada allow you to vacate your property for up to 30 days before an unoccupied or vacant dwelling endorsement needs to be applied.

However, if you plan on exceeding the 30 day period and your home insurance provider is less lenient with their vacancy periods, they may require you to purchase a vacancy permit. 

Vacancy permits for unoccupied home insurance in Ontario generally cost a flat fee or a small daily interval, making them a worthwhile investment in the long run.

So, if you're planning on getting home insurance for unoccupied property in Canada, speak with your Surex insurance provider at your earliest convenience. Your Surex insurance advisor will be happy to answer your questions and help you find the right solution.

Unoccupied vs vacant home insurance — Which is more expensive?

As mentioned earlier, you may have to purchase a permit if you're planning to leave your home unoccupied for an extended period of time. 

But, in some cases, you may not have to pay any additional fees. For instance, you vacate your home for less than 30 days and a friend, family member, neighbour, etc., checks in on the property  (as per your insurance carrier's conditions).

In contrast, vacant home insurance can be quite costly. Vacant home insurance can cost 60% more than standard home insurance and is even more expensive than unoccupied home insurance in BC, Ontario, and many other Canadian provinces. 

There are a number of reasons why vacant home insurance is more expensive than standard home insurance, but the primary reason is that vacant properties are more prone to risks like vandalism and burglaries. Additionally, if something happens to the property (a fire, burst pipe, etc.), no one will be there to address the issue, which increases the likelihood of severe property damage.

So, if you need to invest in home insurance for your vacant home, get ready to pay a pretty penny for coverage.

Four things that you can do to protect your unoccupied or vacant home while you're away

Despite the fact that vacant and unoccupied homes are at a greater risk of vandalism, burglaries, etc., there are a number of things that you can do to decrease the risk of avoidable issues.

Here's a quick list of some effective tips that you can try:

• Consider upgrading your home security system and make sure the alarm is on while you're away.
• Install timers on your lights to make it look like people are home.
• Hire a service to take care of the exterior of your home (mow your lawn, rake your leaves, clean your gutters, etc.)
• Remove expensive decor, technology and other valuables from your home.

Are you looking for home insurance quotes for your vacant home? Don't hesitate to contact your Surex insurance advisor today!

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