What happens if the insured premises are not occupied within the specified time frame?

When an insurance policy includes a specified occupancy requirement, failing to meet that requirement typically results in the cancellation of the policy. This is because insurance on a property is often based on the assumption that the insured premises will be occupied and used as intended, presenting a normal risk profile. If the property remains unoccupied beyond the designated time frame, the insurer may view this increased risk unfavorably, leading them to cancel the policy in order to mitigate potential losses.

In certain scenarios, other penalties or adjustments to coverage levels may occur if that occupancy requirement is not met, but cancellation is one of the most common outcomes for failing to adhere to these stipulations. Therefore, the understanding of how occupancy affects policy validity is crucial for maintaining the coverage and protecting against potential risks associated with unoccupied properties.