What to do about a lapse in insurance coverage?
Question Details: I had a lapse in insurance coverage on a boat I own. It's now insured but the lender wants to make me pay for the 7 months I didn't have insurance and it's like 11x higher than what I'm paying. Is that legal?
My sentiment is that the lender is required to provide you written documentation as to why you need to pay for insurance that lapsed which was reinstated and to whom would any such payments be made to unless the insurance provider would reinstate the policy for those seven (7) months that lapsed. Whether or not the demand is legal depends upon what the loan agreement that you have for the boat states.
