Home Insurance on a Vacant House After a Death in Ontario

When someone dies and their house sits empty, the insurance policy is easy to forget. The bills may keep being paid for a while, but the policy was written for a home that someone lives in. An empty house can change how the insurer sees the risk.

This article explains, in general terms, what an executor (the estate trustee) should know about insuring a vacant home in Ontario. It does not replace reading the actual policy or speaking with the insurer, and a lawyer can help if coverage is disputed.

Why the executor is responsible for the house

A deceased person's property, including the home and its contents, vests in the personal representative, who holds it as trustee. 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 fire or water loss in a home that is not properly covered can be costly for everyone involved in the estate. That is why many executors look at the insurance policy early. Exactly what is expected of you depends on the will and your situation, so it is worth confirming with a lawyer.

How vacancy can affect coverage

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 material to the risk that is 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 contain their own vacancy or unoccupied clauses, for example a limit on how long the home may sit empty. Those terms differ from policy to policy, so there is no single number of days that applies to everyone. Your policy wording is what counts.

What happens after you notify the insurer

Once the insurer has been notified of a material change, it may cancel, or it may require an additional premium to be paid within fifteen days.

The contract can also be ended in other ways. The insurer may end it on 15 days' notice by registered mail, or on five days' written notice delivered personally or by other permitted means. The insured may end it at any time on request.

This matters because telling the insurer is not risk-free: you may be asked to pay more, or to find different cover. Still, staying silent can leave the affected part of the policy void. Most executors find that a candid conversation early is far better than discovering a problem after a loss.

Questions to put to the insurer

• Does the policy still cover the house now that the named insured has died, and who is recognized as the insured?
• Does the policy have a vacancy or unoccupied clause, and what exactly triggers it?
• What cover, if any, applies to a vacant dwelling, and would a separate vacant-home policy be offered?
• Is there an additional premium, and by when must it be paid?
• Does the policy cover the contents, and what conditions apply to them?
• Can the insurer confirm its answers in writing?

Write down the date, the name of the person you spoke with, and what they said. Ask for written confirmation of any change.

What to do next

• Find the current policy and read the vacancy and change-of-occupancy wording.
• Notify the insurer or its agent in writing that the owner has died and that the house is, or will be, vacant.
• Ask for written confirmation of the cover that continues and any extra premium.
• Keep the premiums paid and diarize the renewal date.
• Keep records of inspections of the house and of any steps taken to secure it.
• If the insurer cancels or refuses a claim, speak with a lawyer promptly about your options.

If you are unsure whether you have authority to deal with the insurer yet, ask a lawyer how to proceed. Trustees are expected to act carefully, and a documented paper trail helps if anyone later questions how the house was handled.

Frequently asked questions