Most mortgages require continuous coverage to protect the home/financial asset. This is one reason why policies have effective dates and ending dates. For instance, if coverage were paid in full, but was not going to be renewed for any reason, the homeowner would still have coverage until the end of the stated policy period. During this time, a homeowner could obtain new coverage with an effective date starting at or before the previous policy's end date. In that case, there would be no need for LPI. If a lapse in coverage were to occur or be expected, or if the lapse occurred during a specific time frame, a short-term LPI policy may be placed to ensure continuous coverage.