Vacancy Clause
Definition:
A policy condition that limits or excludes coverage if a home is vacant for a set period of time.
Explanation:
Vacant homes are at higher risk for vandalism, fire, and undetected damage. Most policies restrict or reduce coverage after 30–60 days of vacancy.
Example:
If you leave a house vacant for three months and it suffers vandalism, the insurer may deny coverage under the vacancy clause.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.