Steven V. Buckman Insurance Law Blog on Lawyers.com

The vacancy of property generally will not void the coverage automatically upon breach of the vacancy clause.  However, when there is a breach, coverage will generally be suspended so long as the premises continue to be “vacant or unoccupied”. Couch on Insurance, _ 148:73 (citing Knight v. U.S. Fidelity & Guaranty Co., 182 S.E.2d 693 (Ga. App. 1971)).

More specifically, the Oklahoma Supreme Court has addressed issues of surrounding an insurance company’s waiver of the clause (which, it should be noted, protects the insurance company, not the insured).

In Security Ins. Co. v. Cook, 227 P. 402 (Okla. 1924), the Court held that where the insurance company has knowledge of the breach and later accepts premiums under the policy, the insurance company has impliedly waived any protection afforded by the clause.

Under such circumstances, the insurance company does, however, have the option to cancel the policy. To exercise its option, the insurance company must give notice to the insured “in clear and unequivocal terms prior to the loss, in order to make the forfeiture effective.”

After notice of the breach of [the vacancy/occupancy provision] comes to the [insurance] company, it will not be permitted to allow the insured to be lulled into a sense of security by apparent acquiescence, and, after the notice of the loss comes to it, effect a forfeiture of the policy for the breach.