Reinstate Insurance Coverage

Reinstate Insurance Coverage Having your insurance policy cancelled or lapsed can lead to financial hardship if you experience an unexpected loss, accident, or other incident that would normally be covered. Fortunately, it is often possible to get your canceled insurance reinstated by contacting your insurer and taking the appropriate steps. Here is what you need to know about getting your policy back in force if it has been dropped.

Reasons for Cancellation

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Insurance policies may be terminated for several reasons including:

  • Non-payment of premiums
  • Providing inaccurate information on the application
  • Too many claims filed in a short period of time
  • Failure to meet policy requirements such as dropping hurricane coverage in high risk areas
  • Fraudulent activity associated with the policy

The cancellation notice from your insurer should explain the specific reason why your policy was terminated. This will help determine what actions need to be taken to reinstate coverage.

Reinstatement Protocol

The first step is to contact your insurance company as soon as possible after receiving a cancellation notice. Ask about their reinstatement protocol and what steps you need to take to get your insurance back. Requirements vary by insurer but often include:

  • Paying all past-due premiums that you owe
  • Providing documentation to correct inaccurate information on your application
  • Providing proof that you’ve fixed any issues that led to excessive claims
  • Signing an affidavit confirming lapses in coverage or other protocol breaches like dropping hurricane coverage won’t occur again

You may also be required to re-apply and go through underwriting again to have your coverage reinstated after cancellation.

Impacts on Your Rates

Lapsing insurance or having your policy cancelled can negatively impact your rates when reinstating coverage or applying to a new insurer. Some companies may charge higher premiums or drop certain kinds of coverage when restarting a terminated policy. Having a gap in coverage may also count against you as continuous insurance is seen as lower risk.

Any accidents, traffic violations, or other incidents during a lapse in coverage also might negatively impact your reinstated policy. Be prepared to pay a higher rate if you need to reinstate insurance after a gap.

Avoiding Cancellation

To prevent the headache of reinstating insurance, be sure to:

  • Pay all premiums on time and set up autopay if possible
  • Thoroughly review all policy documents to ensure you meet requirements
  • Provide all information accurately when applying and renewing
  • Avoid excessive claims by taking preventative measures when possible

Keeping your policy in force is always preferable to reinstatement. But if you do receive a cancellation notice, act quickly to get your coverage back on track. Contact your insurer immediately and comply with their reinstatement procedure to avoid extended gaps in your protection.

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