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Once your policy lapses, your insurance company is no longer liable should something happen to or on your property. There are several implications here:

1) any personal liabilities that would otherwise be borne by your insurance company would go against your estate (the property and/or your personal assets)

2) any damage to the property would normally go against the estate (i.e. you would have to pay for damage caused by a broken pipe or a tree that falls on the roof, etc.)

3) Your mortgage company would eventually find out (or should...) and you would eventually be compelled to buy homeowners insurance that your lender selects for you in order to protect the lender's interest in the property. Technically you would be in default of your mortgage if you don't pay for the selected insurance or prove that you have homeowner's insurance at that point.

4) The insurance company may assess you an additional fee for coverage beyond the insurance period (for example if you let the policy lapse without informing the agency that you wished to terminate the policy by a certain date) - sounds weird, but I've seen it assessed.

Bottom line, not paying the home insurance premium has fairly significant effects besides not having insurance coverage.

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Q: What happens if you do not pay your home insurance premium?
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