Can You Get Retroactive Insurance?

In some circumstances, it is legal and permitted to get retroactive homeowners insurance coverage. In other circumstances, it is not. If you simply did not realize your homeowners insurance had lapsed and file a claim within a few days of the incident happening, many insurance companies will allow you to bring the claim. If the damage occurred months or years ago, however, no insurance company will offer financial protection for the costs of repairs. The potential for coverage depends on the insurance provider and the situation.

What Happens If You Lose Homeowners Insurance?

If you lose homeowners insurance, you will lose the option of receiving financial recovery for property damages. Allowing your coverage to lapse means giving up the right to file a claim. Most insurance companies will use the lapse in coverage against you as a reason to deny the claim. If something happens to your home while you are uninsured, you may be out of luck in terms of receiving monetary recovery. You will be personally responsible for paying the expenses of repairs or replacement yourself instead.

It is important not to lose your homeowners insurance, not only to avoid the risk of being financially responsible for damages to your home but also to keep your premiums low. A lapse in coverage could lead to your insurance company charging you more for your policy. The insurance provider may view you as a higher financial risk than people who do not allow lapses in their coverage. Even a lapse of one day could make an insurance company charge you more to renew your coverage.

Can I Get Insurance the Same Day as an Accident?

Although most homeowners insurance policies initiate the date of purchase, they will not cover same-day accidents. If you realize the day of your accident that you do not have homeowners insurance coverage, you cannot buy coverage and expect it to cover damages. This would count as retroactive insurance coverage since the accident occurred before you purchased the policy. Even if you happened to purchase the insurance hours before the accident or property damage occurred, the insurance company will not offer coverage.

Most insurance companies have a waiting period for some or all coverage to come into effect. The waiting period means your insurance will not begin until the specified amount of time has passed. This could be 30 days, 90 days or longer depending on the type of insurance and the provider. Once the waiting period passes, you may then file a claim against your policy. In disaster-prone areas or during storms, some insurance companies have rules requiring a waiting period until after the storm passes.

Is There a Grace Period for Home Insurance?

Some insurance providers will allow grace periods for policyholders. A grace period is a predefined period after your premium, or payment, is due in which the company will allow you to make a payment without a lapse in coverage. A grace period may last 24 hours up to 30 days depending on the insurance provider and the policy. The policy contract will specify whether the insurer allows a grace period, and if so, how long you have to make a payment before your coverage will lapse. Paying after your due date may result in penalties and a dangerous lapse in coverage.

Has Your Home Insurance Company Denied Or Undervalued Your Property Damage Claim In Florida?

If your insurance company is dragging their feet regarding your property damage claim you should speak with an experienced insurance claim lawyer as soon as possible. Please contact us online or call our Florida law office directly at 800.451.6786 to schedule your free consultation. We help Florida residents just like you fight the big insurance companies who fail to abide by their own policies. Remember, we work on a contingent basis, meaning you don't pay us anything until we win your case. 

K.C. Williams III
Managing Partner who has spent his entire career representing Florida insurance and personal injury claims.