Many policies lapse or won’t honor coverage after 30 or 60 days of vacancy.  

On my rentals, I make darn sure contractors are licensed and insured, and ask for proof, and one guy said his insurance lapsed even his truck says licensed and insured.

Market value for the property range between  60,000 and 185,000Appraisal while financing was around 57,000Improvements after financing 30,000Replacement insurance that bank allowed to lapse was 156,000Bank adjuster estimate repair to be 35,000Public adjuster estimated to be 300,000Bank is only trying to settle the amount close to 35,000. 

Let their policy lapse?

Some say, its a market pause...some say its a momentary blip.

Regrettably, I let my license lapse.

Is this something I should be concerned about and should I have tittle search completed before I give my full commitment and let contingencies lapse?

You have a valid buyer - if after 30 days he cannot perform, the contract lapses and it is over.

My question is- should I start looking to move now, while there is this momentary drop in interest rates and slight drop in market pricing?

Almost 5 moths have lapsed since the last lease was signed so not too hard on tenants or new owner.