As a borrower, there are several important rules to be aware of when it comes to flood insurance. With the majority of mortgage loan transactions requiring the purchase of this type of protection, it’s particularly crucial to understand the most common mistake buyers make when it comes to this type of insurance: flood insurance lapses. Basically, your flood insurance can lapse if you fail to make a payment or disregard renewal when your insurance is near expiration. When this happens, the borrower could be subject to higher rates when purchasing new flood insurance and may be sited by the lender as a violation. So what should you do if your flood insurance lapses? Let’s take a closer look.