Lapsed Insurance Policy Negated Flood Claim

Facts: On April 28, 2005, an insurance company notified a Mississippi site owner that her policy had expired on April 25, but could be reinstated without any lapse in coverage if she paid the company $1,464 within 30 days. The owner did not pay on time. Instead, on Aug. 23, 2005, she submitted a new application for flood insurance, paying $317 for another policy. On August 30, the company issued the new policy, giving it an effective date of Sept. 22, 2005.