How to Close on Time During Hurricane Season

Well, here we are again…at the start of another season. While preparedness is the name of this game, thinking ahead is especially beneficial for home buyers. Being proactive about your insurance coverage will play a huge factor in getting to actually close when you are scheduled to close.

What’s in a Name?
The principle governing the ability to get insurance coverage is:

If there is a named Tropical Storm or Hurricane located in what is referred to in the insurance industry as the “No Bind Box” then no application for new, or an endorsement for increased coverage, shall be written or bound.

The No Bind Box is defined by precise latitude and longitudes and actually covers a considerable area. It encompasses Haiti, almost the entire Gulf of Mexico and as far north as Memphis.

The “Buyer Beware” caveat to be conscious of here is that not all insurance providers will stop binding even if a “named storm” enters the box.  They do however reserve that right.

My very strong recommendation is that you check with your insurance agent to confirm your options, but in my experience, the best of those options is to get it bound as quickly as possible.

  • In transactions driven by time, a buyer doesn’t want the insurance they need to secure their financing going out the window….until such time that the storm is out of this storm grid. You never really know how long a storm is going to sit and spin.
  • We strongly urge Realtors and their clients to be cognizant of the timing and stand firm in the knowledge that storms today are carefully monitored. When they meet specific standards and are identified by name, it will be one you’ll never forget if it hinders your closing.
  • Keep your insurance agent in the loop as you proceed through the process of finding, making an offer and working with your lender so the agent has as much information as possible to be ready to bind your policy before their hands are tied.

In this industry, there are many factors of which we need be mindful, but relying on Mother Nature to be cooperative is not the best home closing strategy.

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