Why might an insurer deny a claim based on vacancy?

An insurer might deny a claim based on vacancy primarily because if a property is vacant for more than the allowed time, it poses a higher risk for losses such as vandalism, theft, or deterioration. Most insurance policies include a vacancy clause, which specifies the duration a property can remain unoccupied before it affects coverage. When a property exceeds this duration, the insurer may consider the risk too great and thus deny claims related to incidents that arise during that period of vacancy. This clause helps insurers manage their risk exposure and ensures that properties are adequately maintained and monitored.

Conversely, being unoccupied for less than the specified time may still be within the limits of coverage, and the failure to report the vacancy or the property's listing status typically does not lead to an automatic denial, unless explicitly stated in the policy's terms.