Reinstatement

Glossary

While having renter’s insurance is important for all individuals currently renting, sometimes life gets in the way and policyholders are unable to pay their premiums, causing their insurance policy to lapse.

However, if this unfortunate experience does occur, policyholders do have an option at their disposal. Once they are able to pay their premiums again, they can ask their insurance company to reinstate the policy.

In essence, reinstatement is the restoration of an insurance policy after it has lapsed as a result of nonpayment of premiums.

Many insurance companies will require a previous policy holder to submit an application for reinstatement that provides evidence of the individual’s insurability. If approved, the reinstated coverage is issued, typically at the same premium and under the same conditions as the original policy.

While you do not have forever to apply for reinstatement of your lapsed insurance policy, you typically do have three years from when the policy lapsed. This time period is not required to be stated in the policy’s reinstatement provision so make sure to ask your insurance company about its specific time limit to apply for reinstatement.