Definition Of Change In Occupancy Or Use Clause In Insurance

Definition of "Change in occupancy or use clause"

Ray Payne, Real Estate Agent Fathom Realty

Condition in which the occupancy or the purposes for which the premises are being used as described in the insurance policy change so as to result in an increased risk. The policy is void unless prior notice is furnished to the insurance company. Once the company receives such notification, the company can either cancel the policy, or apply a surcharge to the premium to reflect this increased risk.