It is important for policyholders to know the difference because many insurance claims adjusters do not. Let’s begin with the insurance definition of Vacant. Vacancy clause definition is - a special endorsement in property insurance permitting premises to be vacant or unoccupied beyond the period stipulated in the original contract and insured during the extension period either for the full or a reduced amount. This results in regular wrongful denials of insurance … However, that permit must be purchased within those first 30 days, and it may not cover damages such as vandalism, broken windows, or damage caused by flooding. Insurance policies most frequently deal only with vacancies. Commercial insurance policies may also contain similarly worded vacancy exclusion clauses. Vacancy definition, the state of being vacant; emptiness. A vacancy permit is an amendment that can be added to a home insurance policy when the insured property is vacated. If you have questions about COVID-19 and its impact on insurance coverage, the Clark Wilson LLP Insurance Group is here to provide you with coverage advice. See more.

The above analysis would equally apply to any species of policy containing similar clauses. Vacancy Provision Definition Vacancy Provision — property insurance policy provision found in most commercial property policies that severely restricts coverage in connection with buildings that have been vacant for a specified number of days (typically, 60 days). If you have an unrented rental and are unable to find a new tenant within 30 days, you’ll need to apply for a vacancy permit from your home insurance company.

Vacating a property for an extended period of time will typically void home insurance coverage. When disputes over vacancies arise, and the insurance policy only uses general terms for vacancy, litigation can occur. The difference between the definitions of the terms is critical if a policy contains a “vacancy” exclusion, but not an “unoccupancy” exclusion.

Though a vacant structure is typically viewed as a materially different risk than an occupied structure, the term “vacant” is not specifically defined in the various provincial Insurance Acts. In litigation, adjusters refer to the common dictionary definition of vacancy and occupation when processing claims.

A property is vacant when there is no personal property inside the home to allow for someone to live there. With a vacancy permit, however, the property will remain insured even while it …