Q: What happens if my Homeowner Insurance is cancelled?

A: If and once your homeowner insurance is cancelled, you no longer have any coverage and it’s necessary to immediately write new coverage. Your home and your home’s insurance is the bank’s collateral on your mortgage loan. Banks and lending institutions, (mortgagees), will force-place coverage only for the loan’s remaining balance. This means you won’t have enough coverage to repair or rebuild—only to satisfy the loan. And their cost is extremely expensive! In some cases to rewrite new coverage you may be required to pre-pay the yearly premium or you may have to resort to coverage through MPIUA, the State’s Fair Plan for at least one (1) year.

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