How Is Vacant Property Insurance Priced in Canada?
Learn what factors influence the cost of insuring an unoccupied home and how you can manage the expense
Vacant property insurance often costs more than standard homeowner’s coverage—and for good reason. An empty home is more vulnerable to theft, vandalism, unnoticed damage, and delayed response during emergencies. Insurers account for this increased risk when setting premiums.
This becomes important when you’re budgeting for a property transition, managing a vacant estate, or preparing a home for sale. You might think about this the next time your home is likely to sit empty for more than 30 days.
What Influences the Cost of Coverage?
Vacant home insurance in Canada is priced based on a number of factors that reflect both risk level and policy detail. Here are the main considerations:
-
Location of the property
Homes in urban areas with higher rates of theft or vandalism, or rural areas with slower emergency response times, may cost more to insure. -
Duration of vacancy
The longer the home is expected to remain empty, the higher the risk—and the premium. Temporary vacancies under 90 days may cost less than indefinite or long-term ones. -
Condition and age of the property
Well-maintained and modern homes are less likely to suffer from infrastructure issues like leaks, faulty wiring, or mold. -
Level of coverage selected
Choosing coverage for vandalism, liability, or weather damage adds to your cost. The more comprehensive your protection, the higher the premium. -
Security and maintenance measures
Homes with alarm systems, regular inspections, and winterization may qualify for discounts or reduced risk surcharges.
| Pricing Factor | How It Affects Cost |
|---|---|
| Property location | Higher premiums in high-crime or remote areas |
| Vacancy duration | Shorter vacancies may be less expensive |
| Property condition | Newer, well-maintained homes may lower risk |
| Coverage options | Adding perils like vandalism increases premium |
| Security precautions | Alarm systems and inspections can reduce cost |
Note: Policies may require documented inspections every 3 to 7 days. Failing to meet this requirement can invalidate coverage and lead to denied claims.
What You Might Expect to Pay
On average, vacant property insurance in Canada may cost 20 to 50 percent more than standard homeowner’s insurance. This means:
-
A home that costs $1,200 annually to insure while occupied might cost $1,500 to $1,800 while vacant.
-
Additional endorsements, such as for vandalism or liability, could push costs higher.
Tip: Request quotes from multiple insurers and ask if bundling your coverage or providing proof of regular inspections can help reduce your rate.
Why Paying More Can Still Save You
Though the premiums are higher, vacant property insurance protects you from the full cost of major losses, such as:
-
Fire damage while the home is unattended
-
Liability claims from trespassers or injury
-
Vandalism or weather-related destruction
Caution: If you keep a standard home policy active without notifying your insurer of vacancy, your coverage may be void. This could result in thousands of dollars in uncovered damage or legal exposure.
Vacant home insurance may feel like an extra cost, but it is an essential safeguard during periods when your property is most at risk. Pricing reflects the added danger of an unattended home—but also provides critical peace of mind.