KARAKTER Realty · Calgary Estate Sales

Vacant home insurance for Calgary estate properties: what executors need to know

The 30-day vacancy rule

Most standard homeowner insurance policies in Alberta include a vacancy clause that limits or excludes coverage after 30 consecutive days of vacancy. The exact terms vary by insurer, but typical exclusions include:

• Water damage (burst pipes, leaks, frozen plumbing — a major Alberta winter risk).
• Vandalism and theft.
• Fire (in some policies, after 60 days of vacancy).

If a claim arises during the uninsured vacancy period, it will likely be denied. Estate homes commonly sit vacant for 6+ months during probate. Without action, the home is effectively uninsured for most of that time.

What the executor must do immediately

1. Notify the existing insurer in writing within days of the deceased's death.
2. Request a vacancy permit or vacant dwelling endorsement — some insurers will add a rider to the existing policy.
3. If no rider available, switch to a vacant dwelling policy — these are designed for unoccupied homes.
4. Document the conversation — keep a written record of who you spoke to, what was agreed, and any new coverage terms.

Vacant dwelling insurance — cost and coverage

Vacant dwelling policies in Alberta typically cost $1,500-$3,500 per year (vs. $1,200-$2,000 for a standard owner-occupied policy on the same home). Cost factors:

• Property value and replacement cost.
• Age of the home (older homes carry higher premiums).
• Location (inner-city Calgary vs. suburb vs. acreage).
• Security measures (alarm system, regular checks, etc.).
• Heat and utilities maintained or not.

Coverage typically includes fire, theft, vandalism, and limited water damage. Some policies exclude water damage entirely; others require winter precautions (drained pipes, maintained heat above 15°C).

Insurer security requirements

Most vacant dwelling policies require:

• Regular property checks — typically every 7-14 days, sometimes weekly. A documented log is required for claims.
• Maintained heat in winter — minimum temperature (often 15°C) to prevent frozen pipes.
• Water shut-off in winter — some policies require water shut off at the main valve.
• Visible occupied appearance — exterior lights on timers, snow shovelled, mail forwarded.
• Alarm system — some policies require monitored alarm.
• No valuables on premises — jewellery, cash, valuable contents should be removed.

Executor personal liability

If the executor fails to insure the home and a loss occurs, the executor can be personally liable to the beneficiaries for the value of the lost asset. This is consistent with the executor's fiduciary duty under Alberta's Estate Administration Act. Practical implications:

• Document every insurance action — when notified, what coverage obtained, premiums paid.
• Pay premiums from estate funds (not personal funds).
• Confirm coverage is in place before any extended vacancy.

Coverage gap during executor changeover

If an executor renounces or is replaced mid-administration, ensure insurance continuity. Lapsed coverage is the executor's liability for that period.

What KARAKTER does

At first walkthrough of a Calgary estate home, KARAKTER REALTOR® Ryan Van Spengen flags insurance status as one of the highest-priority items. We don't sell insurance — but we ask:

• Has the existing insurer been notified of the death?
• Has a vacancy endorsement or vacant dwelling policy been arranged?
• What security requirements does the insurer impose?
• Who is doing the regular property checks?

If the executor doesn't have an insurance broker, we refer to one. Getting this right is critical before listing.

Related

See also: executor duties, probate timeline, and preparation guide.

This page is for general information only and does not constitute legal or tax advice. Alberta estate and probate law is complex; always engage an estate lawyer and a licensed Alberta REALTOR® for your specific situation. KARAKTER Realty is licensed under RECA.