Insuring and Securing a Vacant House After the Owner Dies in Ontario

When the owner of a house dies, the home often sits empty for months while the estate is sorted out. Someone, usually the executor or a family member, holds the keys and wonders whether the insurance still works and what has to be done to keep the property safe.

This article explains how Ontario's statutory insurance conditions treat a vacant home, what happens once you tell the insurer, and the practical steps that protect the house. Every policy is different, so the wording of the actual policy matters.

Who is responsible for the empty house

In Ontario, only an estate trustee has legal authority to manage or distribute an estate, which includes selling the home or clearing it out. A deceased person's property, including the home and its contents, vests in the personal representative, who holds it as trustee.

That means the person named as executor is the one who should be dealing with the insurer, even if a relative has been living in or checking on the house. If you have not yet been formally appointed, speak to a lawyer about what you can safely do in the meantime.

Trustees are expected to act honestly and reasonably. A court may relieve a trustee from personal liability for a breach of trust only if the trustee acted honestly and reasonably and ought fairly to be excused. Looking after the insurance is one of the simplest ways to show you took care.

Why vacancy can put coverage at risk

The statutory conditions are deemed to be part of every fire insurance contract in force in Ontario, including home policies covering fire, and no variation of them binds the insured.

Statutory Condition 4 deals with material change. A change that is material to the risk, and within the insured's control and knowledge, voids the contract as to the part affected unless it is promptly notified in writing to the insurer or its agent. A house left vacant after a death can be such a change.

Many policies also have their own vacancy or unoccupied clauses, sometimes with a time limit. Those are policy-specific and differ from one insurer to the next, so read your policy wording closely and ask the insurer or broker, in writing, how it treats a home after the owner's death.

What happens after you notify the insurer

Once the insurer is notified of a material change, it may cancel, or it may require an additional premium to be paid within fifteen days. Telling the insurer can feel risky, but staying silent can leave the affected part of the contract void.

Because an insurer can end the contract on short notice, do not wait until the last day to find replacement coverage. Ask your broker whether a policy designed for vacant or estate-held homes is available, and keep the old policy in place until the new one is confirmed.

Practical steps to secure the property

Insurers and courts both look kindly on an executor who takes sensible, documented precautions. Consider the following.

• Notify the insurer or broker in writing of the death and that the home is vacant, and keep a copy of the letter and any reply.
• Ask in writing what coverage applies and what conditions, such as regular inspections, the insurer expects.
• Change or re-key the locks and keep a record of who holds keys.
• Visit regularly, and record each visit with dates and photos.
• Keep heat and basic utilities on as needed, especially in winter, to reduce the risk of frozen pipes.
• Redirect mail and remove flyers so the house does not look empty.
• Secure valuables and important papers, and photograph the contents before anything is moved.
• Contact the mortgage lender if there is a mortgage, and keep the account in good standing.

The beneficiary who receives the home generally takes it subject to any mortgage unless the will or another document shows a contrary intention. A general direction in the will to pay debts out of the estate is not enough by itself to shift the mortgage off the home. Lender and municipal practices vary, so check directly with them rather than assuming.

What to do next

If a spouse was living in the home when the owner died, remember that a spouse with no interest in the matrimonial home but living in it at the time may stay in possession against the estate, rent free, for sixty days after the death. Coordinate insurance with that situation before anyone moves out.

• Find the policy and read the vacancy and material change wording.
• Send written notice to the insurer or broker as soon as you can.
• Arrange any needed replacement coverage before an existing policy ends.
• Secure the house and start an inspection log.
• Speak to a lawyer if you are unsure whether you have authority to act, or if the insurer denies a claim.

Frequently asked questions