Confirmation of Policy Expiration is a letter from the insurance company informing the recipient of the termination of insurance coverage as of the expiration date. Termination of coverage occurs when the policy reaches end of the term for which it was issued or at the end of the period for which a premium has been paid. The policyholder’s decision to not renew the policy and allow it to lapse is an example of the cause of policy termination.
In context of mortgages and real estate, the letter may relate to property insurance, flood insurance, earthquake insurance, or other real estate related insurance.
The key information included in the Confirmation of Policy Expiration is listed below:
Verify the date of cancellation is same as what you had expected. Also, if you have replaced the policy with another insurance policy then verify the effective date of new policy is immediately after the cancellation date of the old policy to ensure there is no gap in coverage.
Determine whether the insurance has been replaced by an alternate insurance. If policy has not been replaced and if the insurance was included in the escrow account, then identify if you need to force place insurance or perform other remedial measures.
Updated: Mar 27, 2015