Standard Home Insurance & the Owner Occupied Provision
Standard home insurance policies are written under the stipulation that the insured property be “owner occupied.”
This means the person or at least one of the persons paying the mortgage and the insurance premium must actually live in the building year-round.
Most home insurance policies will contain certain exclusions that kick in after a home’s left uninhabited over 30 days. In some instances, a homeowners policy might be completely nullified for inadequate owner occupancy.
Insurance policies for business and rental property typically include provisions requiring some form of occupancy, too. These work similarly to those found in home insurance.