We started #FrequentlyAskedFridays because a majority of people buy insurance based on blind trust. The goal of this series is to shed light on the most frequently asked insurance questions to keep you more informed.
How late is too late when paying homeowners insurance?
While health and life insurance policies may be required by state law to give you a grace period for payments, property and casualty insurance policies (auto and home) typically aren’t mandated to do so.
Unlike your mortgage payments, which typically have a longer grace period before action is taken, homeowner’s insurance payments are different.
Don’t find yourself in a “Money Pit” situation with lapsed insurance!
Most insurance companies have the same practice, in which they require a 10-day cancellation notice be sent before your homeowners insurance is canceled.
However, it’s possible your state may allow the cancellation notice for nonpayment to be included on your bill and not sent as a separate notice. This means by the time your due date has arrived, proper notice has already been given, and your home insurance policy can terminate.
Example: Let’s say you are on a monthly installment plan and your payment is due the 1st of the month. If the insurance company does not receive that installment on or before the 1st, the company will generate and issue a notice of cancellation (typically around 10 days) providing a future date of cancellation. If payment is not received by this final date, the
policy will cancel.
If laws in your state don’t require a grace period for home insurance, it’s up to your homeowners insurance provider to decide if it will give you one or not. To determine if your home insurance company gives you a grace period for payments, read your policy and contact us if neccessary.
If you did miss a due date, and your coverage has lapsed, contact your home insurer ASAP to see if you can get it reinstated. You might have to have your home inspected and/or sign a no-loss statement saying nothing occurred during the lapse that you could claim in order to be reinstated without a gap in coverage.
The short answer: Make it habit to pay your insurance companies on time. Perhaps set a reminder on your smart phone or on your calendar if you have trouble remembering the due date. And as always, we’re here to guide you with all things insurance.
