What Happens If Home Insurance Is Cancelled? 
Aside from the obvious dangerous loss of coverage , you may have problems with your Mortgage Company . If you have a mortgage and your insurance cancels , it is likely that you will receive a letter asking you to provide proof of coverage . If none is provided , it is likely that the mortgage company will obtain coverage on your home in THEIR interest and pass on the cost to you through your monthly mortgate payments . If you had been paying your insurance provider $ 1000 a year , you can expect that the mortgage company insurance policy will run you substantially more than that , say $ 3,000 . And remember , it covers their interest , not yours . 