A lapse in coverage occurs when a homeowners insurance policy is cancelled or expires without a new policy being immediately active. Even a 24-hour lapse is a major red flag for the insurance industry. Beyond the physical risk of being unprotected, a lapse can disqualify you from “Continuous Coverage” discounts and signal to future underwriters that you are a high-risk client. For those with a mortgage, a lapse often triggers expensive “Force-Placed Insurance” from the lender.
Lapse in Coverage
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