My Homeowner's Insurance Was Cancelled and I Need to Reinstate It

Homeowners insurance pays you when your home is damaged.

home sweet home image by David Dorner from

All mortgage contracts require homeowners insurance on the property. Insurance ensures that the lienholder will get their money back in the case of fire, theft or property damage. Most mortgage companies use an escrow account to pay the home insurance but some allow the borrower to maintain their own home insurance. If that insurance lapses or is cancelled, the lender is notified immediately.

Call Your Insurance Agent

Call your insurance agent and ask about reinstating your policy. Most insurance agencies reinstate a homeowner's policy if you pay the premium due. Others open a new insurance policy for your home with identical coverage as your last insurance policy. You risk a higher premium for your insurance policy if you have bad payment history. If your policy was cancelled due to a bad payment history, you may even have to find a new insurance agency to insure your home.

Find a New Agent

Shop around with local insurance agencies and online to get quotes for your homeowner's insurance. Use your previous homeowners policy as a map for the types of coverage you want on your house. Make sure your new insurance agent send a copy of the new policy to your mortgage holder to prevent force-placed insurance from coming into play.

Force-Placed Insurance

When your insurance lapses, many mortgage lenders acquire force-placed insurance. Your lender purchases insurance on your behalf and sends you the bill either upfront or through your monthly mortgage payment. Force-placed insurance is often more expensive than you could get on your own. It may also not contain all the riders and coverage that you want for your homeowners insurance.

Fair Access to Insurance Requirements Act

High-risk plans, or FAIR plans, are state-run insurance plans for consumers who cannot get insurance through private insurance programs. Credit scores impact private insurance and you can be denied for coverage. FAIR plans help you get insurance when everyone else says no. Contact your state insurance agency to get information about high risk-insurance plans for covering your home.