Buying a home is one of the most rewarding events in a person’s life. However, owning a home is a major responsibility, as there is a great deal of upkeep necessary to ensure your home remains in tip-top condition. One way to ensure this is to maintain a homeowner’s insurance policy, and keeping an active insurance policy is often required by lenders. Serving the Milford, PA area, RH Worthington Group is here to assist. But what happens if your homeowner’s insurance policy lapses?

Here is an overview:

You Could Pay Higher Rates in the Future

If you allow your homeowner’s insurance policy to lapse, then your lapse will be documented. Whenever you attempt to purchase a new policy in the future, you could pay higher rates because the insurance companies will have access to the documentation about your previous lapse. 

You Could Be Responsible for Paying for Damages Out of Pocket

Another consequence of allowing homeowner’s insurance to lapse is that your home will be unprotected. If a fire or other damage were to occur, then you would have to pay out of pocket for repairs. Also, if someone were to become injured while on your property and opted to sue, you would be responsible for paying for any damages with no assistance from the insurance company. 

Your Mortgager Could Purchase Insurance For You

In most cases, once a homeowner’s insurance policy lapses, the insurance company will automatically inform the lender. Depending on your lender, they could opt to purchase a replacement policy for the property, but at your expense. Allowing your mortgage company to purchase insurance coverage for your home will almost always be significantly more expensive than purchasing your own. 

Schedule A Consultation Today!

If you are seeking a new insurance provider in the Milford, PA area, then you should consider RH Worthington Group. We have been providing high-quality coverage to customers for years, and we’re prepared to provide you with that same great service. Give us a call today, and one of our licensed insurance agents can provide you with a quote and hopefully, get your new homeowner’s insurance policy started.