Home Insurance Lapse During Switch to New Company
I recently changed my home insurance provider, opting for a standard market company. However, I soon discovered that due to some unforeseen complications, there was a one-day gap between the end of my old policy and the start of my new one. Unfortunately, the previous insurance company is unwilling to reinstate the old policy to cover this lapse.
My concerns are: Will my new home insurance company eventually discover this gap? Is there a risk that they will cancel my policy? What steps should I take now? Any advice would be appreciated!
It’s understandable to be concerned about a gap in your home insurance coverage, especially when switching companies. Here’s what you can do:
Check the New Policy Terms: Review your new home insurance policy. Some companies may ask about prior coverage and could have specific clauses regarding lapses.
Contact Your New Insurance Company: It’s best to be upfront with your new insurer about the lapse. They will appreciate your honesty, and it might be better to disclose this proactively rather than having them find out later.
Know the Risks: While many insurers may not cancel your policy outright for a single-day lapse, they might assess the risk differently. It’s important to understand how this could affect your premiums or coverage.
Consider Gap Coverage: Some companies offer short-term gap coverage or options that can help cover you during the transition. Ask your new insurer if this is available.
Document Everything: Keep records of your communications with both insurance companies regarding the lapse and switch. This can be helpful if questions arise in the future.
Learn for Next Time: When switching companies in the future, make sure to coordinate the overlap of policies to avoid any gaps.
If you have additional questions or concerns, consider discussing the situation with a licensed insurance agent to get tailored advice.