Securing Homeowner's Insurance During Hurricane Season

June 1st has just passed and we Floridians know what that means….it’s time to replace the bottled water stash hidden in the downstairs closet and load up on batteries and flashlights.

Lasting June 1st through November 30, hurricane season takes up half of the year which could pose some obstacles for those hoping to move during this time frame.  During the season, insurance companies grow wary about sudden claim spikes due to tropical storms and hurricanes. For this reason, they have developed the “no-bind box”.

The box, shown on right, illustrates the areas insurance companies stop binding coverage when there are certain imminent natural disasters. Insurance companies will not bind policies if a hurricane enters the green or blue zone or if a tropical storm enters the blue zone.

What If I Want to Move?

Whether it is a thought in the back of your mind or you are actively working with a Realtor, make sure to secure your new insurance policies as early in the buying process as possible. A sudden tropical storm off the cost of the Cuba could extend or jeopardize your closing date. Be proactive and monitor both the state of your policy and the weather. You may find yourself scheduling a closing around a storm.

Purchase enough insurance to rebuild your home in the event of a total loss.  Once your policy is bound, coverage begins on your closing date.

What If I’m Not Moving?

Unfortunately, when a storm strikes, mortgage payments do not go away for those of you already settled into a home. Keep these bill payment tips from the Florida Department of Financial Services in mind during hurricane season to avoid being late:

  • If you pay by phone or online, do so before a hurricane is expected to hit as the storm may interrupt your service.
  • If you pay by mail, do so at least two days before the storm is expected to hit the area because a major storm may put postal service on hold.

For more information on binding suspension, check with your local insurance agent.