What happens if I allow the insurance on my two-family rental property
lapse for a few days. It expires tomorrow, and I could save about 1500
dollars by waiting until next week to re-up with a different company.
Thanks...
In article <>,
"hanson" <> wrote:
> What happens if I allow the insurance on my two-family rental property
> lapse for a few days. It expires tomorrow, and I could save about 1500
> dollars by waiting until next week to re-up with a different company.
Why do you have to wait? Something sounds fishy about a company
that changes prices on policies that dramatically, or has a
lengthy waiting period.
What happens is simple. You have no insurance during the time
between the current insurance expiring, and the new policy going
into effect. If the house burns down, you are out of luck. It
is gone. You are also most likely in violation of your mortgage
agreement where you agree to keep certain coverage. The loan
could potentially be called. The mortgage lender will be
notified when the insurance lapses. If you don't notify them
that you have new coverage, they often have the right to secure
coverage on their own, and send you the bill. Note that they
are not going to shop around for a good price.
Perhaps you can go to your current or new insurance company,
and ask them to provide you with a 10 day coverage policy.
Some companies will do that, but it will likely cost you
at least 1/2 to 2/3 of what a full year would cost.
-john-
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John A. Weeks III 952-432-2708
Newave Communications
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renew, replace, cancell and prorate any permium due to pay for the
short period