What Is a Gap-in-Coverage Letter From an Insurance Company?

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Most people insure their property, such as a house or a car, and carry health insurance. A gap in insurance occurs when policy has been cancelled or altered, leaving time between when the old policy ended and the new one picks up. For example, if you leave home for college, you may lose your health insurance until you are covered at school or choose to pay out of pocket to continue coverage.

How It Happens

A gap-in-coverage letter from your insurance company may notify you of a few different issues. It's used to alert policy holders to gaps in their coverage, such as a lack of flood insurance or sewer backup insurance. It can also occur when the premium isn't paid or something occurs to void the policy. There are other reasons why a gap may occur in coverage, such as missing the renewal letter sent by the insurance company before your policy ends or a time delay between the termination of an old policy and the start of a new one.