What are the consequences of having a lapse without homeowner’s insurance?
What are the consequences of having a lapse without homeowner’s insurance? Several homeowner’s insurance companies are exiting the Florida market and notifying their customers via letter. If you have a mortgage and receive one of these letters, act immediately. Keep in mind that your lender requires you to keep your homeowner’s insurance current, with no lapses, as long as you owe the house.
Wasting no time, contact Univista Insurance for help finding another insurer and avoiding any gap in coverage.
Other times, the cause of the cancellation is that the client has not been able to make certain arrangements required by the contract -roof, electricity or plumbing- or has not paid the monthly premium on time.
If you receive this letter, which generally gives a period of 45 days, you must prioritize the required repair, request the corresponding inspection and send it urgently to the insurer to avoid cancellation.
The worst thing is that if the insurance coverage is canceled for a while, your lender will impose a forced insurance -force-placed insurance-, until you get the new contract. You will say to yourself, “well, it’s not that bad.” But yes it is. The insurance imposed by your lender is usually two to ten times more expensive than regular insurance. In other words, if you pay $400 a month, the monthly premium for the force-placed insurance can be $1,200 or $3,000.
I’ll tell you more, if you were without coverage for a month because you couldn’t find insurance, or you couldn’t make the arrangements on time, when you already have your insurance and are happy, your lender will send you a letter with a surcharge of $1,200 or more for the policy he bought for her -force placed insurance- for the month she was without insurance. If you don’t pay it, in the worst case, you could even lose the house.
In short, if you receive a cancellation letter or asking you to demonstrate that you have made some arrangement required by the insurance contract, contact Univista Insurance and clarify all doubts to avoid a period without coverage, which, as we have seen, is usually very expensive. What are the consequences of having a lapse without homeowner’s insurance?