The 30-Day Rule: How Long Can a Property Sit Empty Before Insurance Ends?

You’ve moved out of your home while waiting for it to sell. Or your rental unit is between tenants. Or your commercial building is in limbo while a new lease is negotiated. You assume your property is still insured because you’re still paying premiums.

But in Canadian insurance, the “30-day rule” changes everything. After 30 days of vacancy, most property policies strip away essential protections — leaving you vulnerable to major losses.

👉 Learn more or get a Vacant Property Insurance quote. through our Vacant Property Program.

What Is the 30-Day Rule?

In Canada, most home and commercial property insurance policies include a vacancy clause. This clause states that if a property is vacant for more than 30 consecutive days:

• Coverage for certain perils is reduced or removed entirely 
• The insurer may require you to add a vacancy permit or buy a separate vacant property policy 
• In some cases, coverage may be cancelled altogether 

This applies to both residential and commercial properties — and the clock starts ticking the day the property becomes vacant.

What Happens After 30 Days?

Here’s what you can expect once the vacancy clause kicks in:

• Removed Coverage: Theft, vandalism, and water damage are typically excluded. 
• Reduced Coverage: Fire may remain covered, but only as a “named peril.” 
• Inspection Requirements: Some insurers will keep limited coverage if you perform weekly inspections (and document them). 
• Policy Endorsements: A vacancy permit can be added for short-term vacancies, but it may still exclude certain risks. 

Why Insurers Limit Coverage

Vacant properties carry significantly higher risks:

• Break-ins & Vandalism: Industry data shows vacant homes are 3x more likely to be broken into than occupied homes. 
• Water Damage: A burst pipe can cause tens of thousands in damage before anyone notices. 
• Fire Risk: Many vacant property fires are linked to arson, and response times are often slower. 

Real-World Examples

Case 1 – Denied Claim:
A Calgary homeowner left their property vacant for 45 days while awaiting sale. Vandals broke in and caused $18,000 in damage. The claim was denied because the 30-day period had lapsed without vacant coverage.

Case 2 – Paid Claim with Vacant Coverage:
A BC commercial building sat empty for two months between leases. A storm damaged the roof, but because the owner had a vacant property policy in place, the $42,000 repair was covered in full.

How to Avoid a Gap in Protection

1. Notify Your Insurer Immediately: Don’t assume you can “fly under the radar.” 
2. Understand the Start Date: The vacancy period begins when the property is truly vacant — not when you tell your insurer. 
3. Consider a Vacancy Permit for Short Gaps: If the vacancy will be under 3 months, this may be cost-effective. 
4. Get a Standalone Vacant Property Policy: For longer vacancies, this is the safest option. 
5. Follow Inspection Rules: Even with coverage, insurers often require weekly, documented visits. 

The Bottom Line

The 30-day rule is not a suggestion — it’s a binding policy term that can void coverage. Whether your property is residential or commercial, make sure you understand how vacancy affects your insurance and take action before you hit that 30-day mark.

Failing to plan for a vacancy is one of the most common — and costly — insurance mistakes Canadian property owners make.

🛡 Protect your property before the 30 days are up. Get a Vacant Property Insurance quote. today.