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Rest easy with the right homeowners insurance
Get better value from customized homeowners policies, whether you’re reassessing or starting out fresh.
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Home insurance is one of those things homeowners don’t think about until something goes wrong. But maintaining continuous coverage is essential, and even a brief home insurance lapse can have costly consequences. From unexpected repair bills to complications with your mortgage lender, a lapse in coverage leaves your home and finances vulnerable.
A home insurance lapse happens when your homeowners insurance policy is no longer active, leaving your property uninsured for a period of time. Whether the lapse happens because of a missed payment, policy cancellation or administrative error, the risks of going without coverage are serious. Let’s break down what happens if home insurance lapses, why lapses happen and what you can do to avoid this expensive headache.
A lapse in home insurance coverage means there’s a gap between when one policy ended and another began (or when the original policy was reinstated). During that gap, your home is unprotected by insurance. There are several reasons why a home insurance lapse can happen, from simple oversights to more complex issues with your property or policy. Understanding the most common causes can help you stay ahead of potential problems and keep your coverage intact.
Even a short lapse in coverage can create long-term problems. Insurance companies, mortgage lenders and future insurers don’t tend to be forgiving about coverage gaps. Here’s what you could be up against:
Don’t panic, but do act fast. The quicker you address the situation, the better your chances of avoiding long-term consequences. Here are your next steps:
A little preparation can go a long way in preventing home insurance lapse. These habits can help keep your coverage intact:
A home insurance lapse might seem like a small paperwork issue, but the consequences can be very real – and very expensive. These real-life examples show just how easily a lapse can happen, and how the financial impact can snowball when homeowners are caught off guard.
The forgotten payment
A homeowner switched banks and didn’t update their autopay, resulting in a missed payment and lost coverage. Just three days into the lapse, a severe hailstorm caused $20,000 in roof damage. Without coverage, the homeowner had to pay the full cost out of pocket.
Nonrenewal due to property condition
An insurer declined to renew a policy because the homeowner hadn’t updated an aging plumbing system. The homeowner didn’t act quickly enough to secure new coverage, resulting in a 45-day lapse. When they finally found a new policy, the premium was 40% higher because of the gap.
What is the grace period for missed home insurance payments?
Most insurers offer a grace period between 10 and 15 days, but policies vary so always check your specific terms.
Can I get homeowners insurance after a lapse?
Yes, but it may be harder to find and more expensive. Some insurance companies won’t cover homes with a lapse history, while others will offer coverage at a higher price.
What is force-placed insurance?
It’s coverage your mortgage lender purchases if your policy lapses. It protects the bank's investment but is more expensive and offers less protection than a standard policy.
How can I lower my homeowners insurance premium?
Options include increasing your deductible, bundling with auto coverage, improving home safety and maintaining good credit. Shopping around for quotes regularly also helps.
A home insurance lapse doesn’t just put your property at risk; it can raise your premiums, jeopardize your mortgage, and limit your future options. The best way to avoid these problems is to stay proactive. Keep payments on track, maintain your property and work closely with your insurance company to ensure your coverage stays uninterrupted.
If you need help finding coverage the VIU by HUB Advisory Team is ready to help you compare your options and find the right policy for your home.
The VIU Point is here to help you make sense of it all, so you can confidently compare auto insurance quotes and make the best policy decisions.
