Q: How big of a deal is it if I let my insurance lapse for a while—to save money or handle it later?
A: It’s a bigger deal than many people may realize. Letting coverage lapse—even for a few months—can create lasting consequences that go beyond the gap in protection!

Here’s why skipping coverage “for a little while” can hurt you later:
•  You’re uncovered during the lapse – Any damage or liability during that time is 100% out of pocket.
•  You may not be able to get reinsured easily – Many insurance companies have internal rules against underwriting new policies after a 60- to 90-day lapse.
•  You may get pushed to high-risk carriers – These fallback insurers often charge higher premiums—and may offer limited coverage.
•  It can raise red flags with lenders – Especially if the property is mortgaged, a lapse can violate loan terms.

Bottom line: Pausing insurance might seem like a short-term money saver, but it often leads to higher costs, fewer options, and more risk down the road. If you’re changing how a policy is paid (like moving it out of escrow), triple-check that coverage never gets interrupted.

Any questions? I’m Vincent Hicks, a CPA based in the Cambridge–Somerville area. Reach out at vhicksconnect@gmail.com or (859) 553-0788.

Disclaimer: This column provides general financial information and should not be considered legal, investment, or tax advice. Always consult a qualified professional for personal guidance.