What happens if I accidentally let my home insurance lapse if I have a mortgage?

I accidentally let my home insurance lapse for three days, but then I got a new policy. I haven't heard anything from the mortgage company yet, and I'm scared to call them. What happens if I accidentally let my home insurance lapse?

Answer
“Since you let your insurance lapse, two things will probably happen:
  • You won’t be able to make any claims on any damage that occurred during that three-day lapse in coverage.
  • The mortgage company probably put force-placed insurance on your home at a massively inflated rate.
In the latter, you typically receive a phone call or a letter informing you of force-placed insurance. Since you have another policy in place, you may be able to get the force-placed insurance removed. However, you’ll have to call your mortgage company to determine whether that’s possible.
In the future, make sure your home insurance doesn’t lapse to avoid these charges. If you can, try to set up autopay. With autopay, your insurance payments will automatically come out of your account when your policy renews.
If you find that your new policy’s rates change as a result of the force-placed insurance, it might be time to shop around again. You can use the free Jerry app to compare rates from the top providers and get the best deals delivered to your phone.”
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Eric Schad
Answered on Aug 12, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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