Has anybody heard about letting home insurance on a rental unit lapse due to needing a new roof for example that wasn't completed on time - in order to get a better rate because the bank requires it and will buy it on behalf of the landlord at a discount and pass that payment on to the landlord, but at a cheaper rate than what the landlord could get.

@Dan Heath

Every time I have heard about "force-placed" insurance (creditor-placed insurance); it is more expensive than purchasing it on your own. Are you able to have the roof work done and then source other insurance quotes on your own?

Yeah...I've got a roofer lined out. That's good to know and probably safer to not let it lapse. Thanks for the reply. I appreciate it!

Dan

I see a couple of issues on this:

1. During the period of lapse you have no coverage

    - if you let the coverage lapse on 3/1 when does their coverage begin.  

2. The policy from the Mortgagee (called Forced Placed Coverage) may only cover the Mortgagee's interest 

     - may not include Liability or may not insure you

     - may only cover to the amount of the mortgage

     - probably will not cover your contents

      - probably will not cover loss of rents

      - probably does not coverage Personal Injury (libel, slander, wrongful entry, etc...)

You should see if you can get answers to the above before you go the route of lapsing the coverage.

Thanks for the input. The policy won't lapse as long as I have a quote for the work before 3/23