0
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.
Add your answer:
Earn +20 pts
What happens to a insurance premium when a deductibles increased?
Generally the cost of the premium goes down. The more you pay out of pocket when you file a claim the less you pay for the premium.
Can your homeowner's insurance premium be included in closing costs?
Your homeowners insurance premium SHOULD be included in your closing costs. Now as far as asking the sellers to pay for it--you can ask them to pay for anything--it's up to them whether or not to.
What does insurance premium mean?
The premium is the cost that you must pay to have the insurance.
What is a car insurance premium?
A car insurance premium is the amount of money paid to an insurance company for a 6 month period. It is cheaper to pay the full premium that pay each month.
When your wife bought her home back in the seventys she said she had insurance to pay off the home on her death is that possible?
It is if she maintained the insurance over the years by paying the premium if not escrowed.
How long pay insurance premium to Insurance Company after truck accident?
You will continue to pay insurance premium to renew the policy,irrespective of the claim to be submitted after truck accident.
Does insurance premium mean monthly?
No. The premium is the price you pay for the coverage. Depending on your insurance company, the premium may be paid all at once or in payments.
Can you pay your life insurance premium online?
Contact your life insurance company and they can tell you if you can pay online
What you pay every month for your insurance is called the?
premium
How does universal life insurance differ from other forms of life insurance?
Universal life insurance means you will pay the same premium until death, where as with term life insurance you will pay a certain premium for a period of time and then may or not be offered the same premium again for another term.
Will car insurance premium increase if you pay a premium renewal one day late?
Usually not. However, insurance companies can charge late or reinstatement fees if you pay late.
What happens when you want to stop paying premium on your item which you have insured?
If you don't pay the premium the policy will be cancelled.If you don't pay the premium the policy will be cancelled.If you don't pay the premium the policy will be cancelled.If you don't pay the premium the policy will be cancelled.
