I was so busy over the holiday period that I forgot to budget for the insurance premiums and missed one payment. I have a mortgage over the property and am now getting concerned about the implications of the missed payment.
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by Neha Sharma, Hillsdale 2036 NSW
- All policy holders must regularly pay the premium by the due date to get insurance cover.
- Some insurers allow policy holders to make either:
- one annual payment;
- monthly payments;
- quarterly payments; or
- half yearly payments.
- If you do not pay the premiums on time your insurer may:
- refuse to pay a claim; or
- cancel your policy.
- You should check your Product Disclosure Statement to see the specific requirements under your policy.
- You may also decide to contact your insurance company to discuss repayment options.
- Since you also have a mortgage on your property you should also be aware of any insurance obligations under the mortgage contract.
- It is very common for mortgagees (lenders such as banks) to impose insurance obligations on the mortgagor (the borrower) as a condition for lending money.