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What To Do When Your Homeowners Insurance Lapses

You’ve finally gone paperless. Now the only things you get in the mail are coupons, promotional ads and the occasional greeting card. You put all of this “priority mail” in a special place in your house: in a wicker basket tucked away in cupboard.

A few months go by and you get a notice in the mail: your homeowners insurance policy has lapsed! How could that have happened? You get all of your notifications online, where did this one go?

It went into the wicker basket, tucked between a grocery store mailer and birthday card from your old college roommate. You totally missed it. You don’t have homeowners insurance. What are you going to do? When you reinstate your policy, are your premiums going to skyrocket?

It’s time to start running the numbers on some [homeowners insurance quotes](https://coverhound.com/homeowners-insurance), stat.

**Call Your Insurance Company**
As soon as you’ve learned that your homeowners insurance has lapsed, call your insurance company immediately. Ask your insurance about retaining the same insurance plan at the same premium rate. You’ll discover that your plan is no longer available at the same rate, but is in fact even higher than before. Why did the premium costs rise? When you let your insurance lapse, insurance companies mark that as a “risk.” Risks marked on your file increase premium costs.

**Compare Online**
After learning what your new premium costs will be, thank the agent for the information and hang up the phone. It’s time to make some insurance price comparisons. To make sure you are getting a fair deal on your premiums, it’s absolutely vital that you start looking for other homeowners insurance quotes online. By comparing similar packages and their premium rate you will find a package that fits the coverage type you need and doesn’t steal from your wallet.

**Call Your Agent, Again**
After gathering the insurance quotes, call your agent and discuss the competitive plans you have found. This will help you to secure a new and fair premium rate, but that’s only if your agent is allowed to reinstate your policy. If they are not, they can offer a new policy but at a rate they choose. The “risk” mark on your file allows them to do so.

**Reinstate or Buy New Insurance**
If you are unable to [reinstate the policy](http://homeguides.sfgate.com/happens-homeowners-insurance-lapses-49127.html), it’s time to buckle down and find a new policy that will work for you. Once you have found a fairly priced policy, it’s time to do some research into the company. You will want an understanding of the company’s “valuation,” as the [Insurance Journal](http://www.insurancejournal.com/news/southcentral/2013/10/30/309837.htm) describes it. Valuation reflects the company’s sales, personnel, technology and financial management. If the company has a high-standing in all of the above areas, they are safe to conduct business with.

As there is a “risk” mark next to your name, your premiums may still be slightly higher than they were before your policy lapsed. To get a fair deal, make sure to ask about discounts and raise your deductible. Raising your deductible is a guaranteed way to reducing your premium.

No one is perfect, and sometimes things slip through the cracks—that includes insurance. Get your free homeowners insurance quote when you [visit CoverHound today](https://coverhound.com/homeowners-insurance).

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