What happens at a mortgage renewal?
A simple renewal with the same lender may leave creditor coverage in place, but premiums, age bands, insured balance or terms can change. Review the renewal package rather than assuming nothing changed.
Confirm which borrowers remain insured and whether additional health questions apply.
What happens when you refinance?
Refinancing can create a new mortgage amount or account. Existing creditor coverage may be replaced, recalculated or limited to the prior balance.
If health has changed, a new application can create risk. Ask for written confirmation before discharging the old mortgage.
What happens when you switch lenders or move?
Lender-tied insurance often does not automatically transfer to a new institution. A new lender may offer a new policy, requiring fresh eligibility and pricing.
Personal term insurance generally continues because it is connected to the insured person, not the property or lender.
How do you avoid a coverage gap?
Review coverage early in the renewal or refinance process. Apply for any replacement before the old mortgage is discharged, and confirm the new policy’s effective date.
Keep duplicate coverage briefly if necessary rather than cancelling before approval. Coordinate with a licensed professional when health or timing is complex.
