Are insurance companies required to notify you of lapsed policies?

Question:

I have a combined auto/renters insurance policy that I pay for as a lump sum monthly, but I was out of work in Sept-Oct of last year. Since I was out of work, I wasn't able to pay the policy in September, but I paid the policy for both Sept/October, IN October. My policy was reinstated. Anyhow, my house recently got robbed clean and I contacted my insurance provider and they told me my policy was not active. Come to find out, when my policy lapsed, the insurance company did not reinstate my policy. I never got a written notice or anything. Shouldn't they have reinstated the FULL policy and are they oblgated to contact me via written form to advise me that I no longer have coverage??

Answer:
They are required to send you a notice in writing that your policy was cancelled. If you did go in and make a payment, did you specify that both the auto and home were to be reinstated or were you just worried about the auto since the auto is mandatory. If you did request that both were to be reinstated then it could have been a mistake on the agents part. But, after 4 months you should have noticed that you weren't paying the same amount as before and that you never received a reinstatement notice for the renters policy.

Some companies still do have combined policies where they write both auto and renters or homeowners on the same policy. If you did have a package policy then it was a mistake on either the agents part or the companies part.

The policies CANNOT insure both things on one form. They are two seperate policies, with COMBINED billing.

They are only required to attempt give you notice PRIOR to cancellation, ONCE. Then the policy cancels, and you get a cancellation declarations in the mail. If you are then under the impression that they are REINSTATING the policy, it's up to YOU to be sure you receive the REINSTATEMENT notice, for BOTH POLICIES.

Assuming they sent you a cancellation notice for the policies prior to cancellation (which they probably did), and cancellation declarations, it was YOUR responsibility to be sure the reinstatement came through. It's been four months, plenty of time to have noticed the reinstatement didn't come in.

They do NOT have to say, "oh, we sent you a late notice, and a cancellation notice, and a cancelled policy notice, so now we're just reminding you that you no longer have coverage".

I've had clients that NEVER EVER EVER paid a premium on time - if I had to send THAT many notices for EACH cancellation, I'd be sending each of them 50 letters a year! WAY too much effort. SOrry.

Avoid it in the future, by having your payments automatically taken out of your checking account electronically.

They HAVE to notify you, in writing of a policy cancellation. They are required by law. If they did not properly notify you then you might be able to bully them into covering your claim. I would call and ask for proof that they notified you of the cancellation.

If your policy had lapsed and you made payment, they would have too much money and would have been expected to either refund you the overage or apply to your next month's payment.

If you have your receipt or proof of payment, tell them you expect them to send an adjuster out immediately to take your claim info.

Are insurance companies required to notify you of lapsed policies?

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