Canadian Accredited Insurance Broker (CAIB) One Practice Exam

How is a vacant property defined?

1. Property where the occupants have moved out but intend to return

2. All occupants have moved out with no intention of returning and no new occupants are present

3. Property that has been recently sold

4. A property that remains frequently rented

The correct answer is: All occupants have moved out with no intention of returning and no new occupants are present

A vacant property is specifically defined as one where all occupants have moved out with no intention of returning and no new occupants are present. This definition highlights the absence of both current residents and any plans for returning, which distinguishes it from other situations such as temporary relocations. In contrast, a property where occupants have moved out but intend to return does not meet the criteria for vacancy, as there is still a connection or expectation of future occupancy. Similarly, a recently sold property may or may not be occupied, and simply selling a property does not equate to it being vacant. Lastly, a property that is frequently rented would not be characterized as vacant at all, since constant occupancy implies the property is in use. Thus, option B clearly captures the essence of what makes a property vacant.