What Happens When Your Homeowners Insurance Lapses?

If your homeowners' insurance expires, there could be a number of consequences. You should try to maintain coverage so you have adequate coverage from certain losses and damage. Different events will determine the outcome of an expired policy.


If your mortgage is paid in full and the homeowners' insurance policy expires, you will not have any coverage on your home. When damage such as a fire takes place, you will not be able to file a claim. The best thing to do is pay the insurance company and reinstate the policy.

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Force-Placed Insurance

When you owe a balance on the mortgage and your homeowners' insurance policy expires, the insurance company will send notification to you and the mortgage company. If you do not reinstate your policy, the mortgage company will force-place insurance on your home. This type of insurance only covers the structure and not your personal property.



If the mortgage company adds insurance to your loan, you will see your mortgage payments increase by a substantial amount. Your mortgage balance also increases.

Preferred Carriers

When your homeowners' insurance policy lapses and you try to get insurance from another company, the majority of carriers with preferred rates will not take you on as a customer.


High Risk

If there is a lapse in your homeowners' insurance policy and you don't pay the premium for 45 days, the only type of policies that are available could be high risk.