Vacancy: Are You Covered? What Ontario Property Owners Need to Know

Updated October 2026

Most homeowners understand the importance of having insurance on their property. However, many do not realize that their insurance coverage can change significantly when a home becomes vacant.

Whether a property is awaiting sale, between tenants, undergoing renovations or part of an estate, vacancy can create serious insurance concerns.

One of the biggest misconceptions is that insurance coverage automatically continues simply because the premiums are being paid.

At L.D. Dermody Insurance Brokers, we encourage property owners to contact us whenever there is a change in occupancy so we can help ensure the appropriate coverage is in place.

What Is the Difference Between Vacant and Unoccupied?

Although the words are often used interchangeably, they can have very different meanings for insurance purposes.

Vacant Property

A property is generally considered vacant when all occupants have moved out with no intention of returning, and no new occupants have taken up residence.

Examples include:

A homeowner moving permanently into another residence while the original home awaits sale.
A rental property where the tenants have moved out and no new tenants have moved in.
A home left empty following the death of its owner.
A newly constructed home that has not yet been occupied.

A property may be considered vacant even if furniture and personal belongings remain inside.

Unoccupied Property

A property is generally considered unoccupied when the residents are temporarily away but intend to return.

Examples include:

A family leaving for an extended vacation.
Snowbirds spending the winter in a warmer climate.
Someone temporarily staying with relatives while recovering from surgery.

An unoccupied property is not necessarily considered vacant.

However, extended absences may still trigger policy conditions, particularly those involving heating, plumbing and regular inspections.

The exact definitions and requirements depend on your insurance policy.

Why Are Insurance Companies Concerned About Vacant Properties?

Vacant properties present additional risks because problems can go unnoticed for extended periods.

For example, a burst water pipe in an occupied home may be discovered within minutes. In a vacant property, the water could run for days before anyone notices.

Other concerns include:

Theft and vandalism.
Undetected fires.
Frozen or burst plumbing.
Water damage.
Unauthorized entry or occupation.
Injuries occurring on poorly maintained premises.

Because of these increased risks, insurance companies often restrict the coverage available for vacant properties.

What Happens After 30 Days of Vacancy?

Many Ontario home insurance policies contain provisions that restrict or exclude coverage once a dwelling has been vacant for more than 30 consecutive days.

However, the 30-day period is not a universal rule that applies to every insurance policy or every type of loss.

Some insurers have different requirements, and certain coverages may be restricted sooner.

There may also be special provisions for newly purchased properties or homes that become vacant following the death of an insured.

Property owners should never assume they have 30 days before notifying their insurance company.

The safest approach is to contact your insurance broker as soon as you know the occupancy of a property is going to change.

What Is a Vacancy Permit?

A vacancy permit is an endorsement that an insurance company may agree to add to an existing property insurance policy.

It allows the insurer to acknowledge the vacancy and provide specified insurance protection during an approved period.

However, obtaining a vacancy permit does not necessarily mean the property continues to have the same coverage it had while occupied.

Depending on the insurance company, coverage may be restricted to certain causes of loss, such as fire, lightning or windstorm.

Other losses, including theft, vandalism and water damage, may be excluded or subject to additional conditions.

A vacancy permit may also involve:

An additional insurance premium.
A higher deductible.
A limited coverage period.
Requirements for regular property inspections.
Requirements to shut off water or maintain heating.
Restrictions on renovations or other activities.

Some insurance companies may decline to provide a vacancy permit altogether.

In those situations, it may be necessary to arrange insurance through a company specializing in vacant properties.

What Happens When a Property Owner Dies?

This is an important consideration for families and estate executors.

When a homeowner passes away, the property may become vacant if no one continues living there.

Even though the home remains insured in the deceased person's name, the change in occupancy can affect coverage.

The executor or person responsible for managing the property should contact the insurance broker promptly to advise of the death and confirm the property's occupancy status.

The insurance company may require additional information about the estate, the person responsible for the property and the plans for the home.

Some policies contain special provisions relating to vacancy following the death of an insured, but these provisions vary.

Do not assume that an inherited property remains fully insured simply because the existing policy has not expired.

What About Rental Properties Between Tenants?

Landlords should also be aware of vacancy restrictions.

When a tenant moves out, the property may be considered vacant even if another tenant is expected to move in later.

The insurance company may need to know:

When the previous tenant moved out.
When the next tenant is expected to move in.
Whether the property remains furnished.
Whether renovations or repairs are being completed.
Whether the building is being inspected regularly.

Some landlord insurance policies provide limited coverage for normal periods between tenants, while others require specific arrangements.

Always advise your insurance broker when a rental property becomes vacant.

What If You're Renovating a Home?

Renovations can also affect insurance coverage.

If you move out while major renovations are being completed, your insurance company may consider the property vacant or subject to additional construction-related risks.

Even if you continue living in the home, significant renovations may require the insurance company to review the policy.

Before beginning major work, advise your insurance broker about the nature of the renovations, their expected duration and whether the home will remain occupied.

How Can You Protect a Vacant Property?

If your property is going to be vacant, there are several steps you can take to reduce the risk of damage.

Arrange Regular Inspections

Have a responsible person check the property regularly.

The frequency of inspections should meet your insurance company's requirements. In some situations, daily inspections may be appropriate or required.

Maintain Heating During Winter

Ensure the property is adequately heated to prevent pipes from freezing.

If the water supply is shut off and the plumbing system drained, confirm that these arrangements comply with your insurance company's requirements.

Shut Off the Water Where Appropriate

Turning off the main water supply and draining plumbing systems can reduce the risk of water damage.

However, take care if water is required for a hot-water heating system, fire sprinkler system or other equipment.

Secure the Property

Ensure all doors and windows are locked. Consider monitored security systems and exterior lighting.

Maintain the Exterior

Continue cutting the grass, removing snow and ice, collecting mail and maintaining walkways.

An obviously neglected property may attract unwanted attention and create liability concerns.

Keep Records

Maintain a record of property inspections, maintenance and any repairs completed.

These records may be useful if a claim occurs.

What Should You Tell Your Insurance Broker?

If a property is becoming vacant, contact your insurance broker and be prepared to provide:

The date the property became or will become vacant.
The reason for the vacancy.
How long the property is expected to remain vacant.
Whether the property is furnished.
Whether the water and heating systems will remain operational.
How frequently the property will be inspected.
Whether the property is being sold, rented or renovated.
Who is responsible for maintaining and inspecting the property.

Your broker can then approach the insurance company to determine what coverage arrangements may be available.

Don't Wait Until a Claim Happens

Vacancy is one of those insurance issues that homeowners may not think about until something goes wrong.

Unfortunately, discovering that a property has limited or no coverage after a fire, water loss or break-in can have serious financial consequences.

At L.D. Dermody Insurance Brokers, we encourage clients to notify us whenever there is a significant change in how their property is being used or occupied.

Whether you are selling a home, managing an estate, renovating a property or dealing with a rental vacancy, we can help you understand the insurance implications.

The most important message is simple: if a property becomes vacant, contact your insurance broker immediately.

*This article provides general information about vac