When dealing with a vacant home, insurance might be far down your list of priorities, and that’s understandable. It’s already a big responsibility to decide whether to rent it out, sell it, renovate it, keep it a vacation home, or something else. However, you need to move vacant house insurance up your to-do list because it is the need of the hour. 

A vacant property means an open invitation to vandals and thieves, and it doesn’t take long for them to figure out that there’s no one inside. Did you know that in 2019 alone, 1.32 million property crimes were reported in Canada? 

And if you add in the natural disasters like 2018’s rainstorms that resulted in over $80 million in insurance claims; the numbers can paint a pretty scary picture. However, you can protect your vacant home from all of these and many more dangers simply by getting empty property insurance. Read on to know more. 

How Vacant Home Insurance Works

Many homeowners wonder why they even need vacant home insurance when their standard home policy covers everything. While it’s a valid point to consider, the regular residential coverage has its limitations regarding the tenancy of the house. If the house is left vacant for over a month, it’s likely that the home insurance policy won’t provide coverage in this situation. 

Although the vacancy period can be over 30 days, there will be a point to which your home will be protected by regular coverage. Beyond that window; all damage repairs will go straight out of the homeowner’s pocket. So this is where vacant or empty property insurance jumps into the equation.

It will ensure that the whole time your home is empty, it will be protected from various perils listed in your policy ranging from explosions, theft, vandalism, lightning to fire and earthquakes, etc. However, some dangers like flooding might not be included in home insurance for vacant homes; you might have to purchase separate endorsements.

Why and When Vacant House Insurance is Necessary

Anything can happen to a property that’s not under someone’s supervision. A home left alone for an extended period is sitting ducks to thieves and vandals who’re itching to leave their mark. 

Other dangers like burst pipes causing the home to flood, natural disasters damaging it, or a nearby fire/explosion wreaking havoc on your property is a strong possibility as well. 

All of these reasons are more than enough to get vacant home insurance in Canada if you are planning on leaving your property untenanted for a long time. 

Now let’s talk about ‘when’ to get a vacant home policy. Below are a few common scenarios that call for vacant condo insurance in Canada:

• You have a vacation home that you visit occasionally

• You have bought a house but are not planning on moving in for a few months

• You travel a lot and leave your home unoccupied for several weeks during your trips

• You need to get medical treatment that requires hospitalization for several weeks

• You are renovating your home and will not be living there while the work is being done

• Your home is up for rent, and you’re looking for tenants at the moment

Things Covered By Home Insurance for Vacant Homes:

Empty property insurance is not something that covers it all. There are different coverage options, and you need to gauge the frequency and period of vacancy to understand which type of coverage will be best. That said, here are a few common vacant house insurance coverage types to look for when shopping for this policy:

• Broad perils including explosions, theft, lightning, fire, and earthquakes, etc.

• Replacement cost coverage will pay for the cost to get your home repaired or reconstructed to how it was before it got destroyed

• Sewer Backup coverage will pay for the damages done by water originated from the property

• Vandalism coverage offers protection against theft or property damage

Keep in mind that there’ll be some policies that the typical vacant home insurance won’t cover, like flooding, so make sure to iron out each detail before signing the policy form.  Check also this post to learn more about dwelling and contents coverage.

How is Cost for Vacant Home Insurance in Canada Calculated?

A range of factors goes into the calculation for the vacant home insurance cost. Depending on the number of days it stays vacant throughout the year and the level of risk in your area, you’ll get a quote. Some of the most common things that insurers look for include:

• Are you planning on selling or renting it?

• The total period the property will be vacant

• Supervision of the property; anyone looking after it?

• The reason behind the vacancy of the property

• How secure is your property?

• Your plan for the property in the future

• Will you do any renovation?

The cost can greatly vary depending on your specific situation but expect to pay at least 50% more than what you’re paying for your standard home insurance policy. 

Tips to Protect Your Vacant Property and Reduce Insurance Cost:

On top of purchasing vacant home insurance in Canada, you should take precautionary steps to prevent vandalism and theft while your home is empty. Furthermore, the securer your property is, the likely it is that your overall insurance cost will be lower. So here are few things you can do:

• Ask a relative or friend to check on your property frequently and pick up your newspapers or mail

• Put up a sign that says; ‘Do Not Disturb the Occupant’ or ‘For Sale via Appointment Only’

• If you’re blessed with a good neighbor, ask them to park their car on your driveway

• Install motion-activated security lights to deter people with ill intentions

• Set up a timer lamp near windows, so it lights up at specific times throughout the day

• Install video cameras, preferably IP based so that you can remotely access them from wherever you are, and also set up a security alarm

• Put double-bolt locks at all the entry doors

• Hire any private security firm to drive by your home or a house sitter to look after the property

Make sure to do these things before reaching out to insurance companies so that when they visit the property for assessment, they note how secure it is. This can help you slash off a few bucks from your premiums. 

Plus, it would be best to get quotes from multiple vacant condo insurance companies to find the one with the best value and least price.