Picture this: you’re packing for an exciting getaway, double-checking your passport, and setting your out-of-office email. But did you stop to think about how your trip could impact your home insurance coverage? Probably not. Amid the excitement of travelling, the topic of how travel affects home insurance often gets overlooked. From unexpected incidents to policy requirements, protecting your home while on vacation goes beyond locking the doors and leaving a light on. Here’s what you need to know before you take off.
How travelling affects home insurance
Travelling, whether for a long-awaited vacation or an important business trip, can bring unexpected challenges to your home insurance coverage. That’s why it’s important to know exactly how travel affects your home insurance policy to avoid coverage gaps and costly surprises.
Insurance companies often differentiate between “vacancy” and “unoccupied”:
- Vacant homes: Completely empty of belongings and not intended to be lived in.
- Unoccupied homes: Contain personal items and are intended to be inhabited.
In Canada, the 30-day home insurance rule is common. It says that if a home is left unattended for more than 30 days without notifying your insurance provider, it may be classified as vacant, which can void your policy. This is especially important for people who travel out of the country during the winter months and may be looking for home insurance for snowbirds. Insurers consider vacant homes high-risk because:
- They are more vulnerable to theft and vandalism.
- Problems go undetected, such as a fire or a burst pipe that could flood a basement.
- Liability issues, like someone slipping on an icy sidewalk, can arise.
Failing to address these risks can result in serious consequences for your coverage. Without vacant home insurance, claims for damage such as theft, water leaks, or fire might be denied due to misunderstanding your policy’s requirements. For example, if you return from a trip to discover a flooded basement and your insurer considers your home vacant, you could be responsible for all repair costs. Although it’s an extra expense, adding vacant home insurance provides essential protection for your home and ensures your policy remains valid, often costing less than potential repair expenses.
Taking steps to protect your home while on vacation is crucial. Notifying your insurance provider, securing the right coverage, and minimizing risks can save you from financial headaches and provide reassurance while you’re away.
Home insurance policy requirements for vacant homes
Understanding vacancy clauses in home insurance are essential for protecting your home while on vacation or during extended absences. Insurers often have strict guidelines around when a home is considered vacant and what steps homeowners must take to maintain coverage.
Most insurance providers classify a home as vacant after a specific period of unoccupancy, typically 30 or 60 days. If you plan to leave your home unattended for longer than this, it’s critical to notify your insurer so to ensure your policy remains valid. Without proper notification, claims for damage like theft, fire, or water leaks may be denied.
When a home is deemed vacant, standard home insurance policies may not fully cover it. To address this, homeowners can add vacant home insurance, often through a vacancy permit or endorsement.
- Vacancy permits: These provide temporary coverage for homes that will be vacant for an extended period.
- Endorsements: These are add-ons that modify your insurance coverage, such as extending protection for specific risks during a vacancy.
- Costs and benefits: While there is an added cost, vacancy permits and endorsements protect you from the financial risks of leaving your home unoccupied, ensuring your claims remain valid.
