What situation may lead to a loss not being covered under a property insurance policy?

A property insurance policy often contains specific provisions regarding the condition and usage of the insured property. One common scenario that can lead to loss of coverage is when the property is vacant or unoccupied for an extended period of time.

Insurance companies typically include vacancy clauses because a vacant property is generally considered a higher risk for certain types of claims, such as vandalism, theft, or undetected damage from conditions like a plumbing leak. These situations are more likely to occur when no one is present to notice and address issues promptly. Therefore, most property insurance policies will restrict or limit coverage if the property is left vacant beyond a specified period.

In contrast, renting or selling a property, while they may have specific implications for the policy, do not inherently lead to a loss of coverage. The same applies to properties under renovation; while additional coverage may be needed during renovations, coverage typically remains intact as long as the renovations do not violate the terms of the policy.