Hurricane season is here! We all know it can be tempting to wait until you need insurance to buy insurance, but that’s never a good idea, especially when you are purchasing a home.

Insurer’s issue moratoriums on buying new policies when property damage is imminent, like right before a storm. Moratoriums, also called binding prohibitions, can cause closing delays for home buyers who put off securing their homeowners’ insurance policy until the last minute.

During hurricane season, carriers usually wait until a named storm is 24 to 48 hours from the impact before declaring a moratorium. Wildfires, riots, and other events can also trigger moratoriums on new coverage.  When a moratorium is declared, insurance carriers suspend binding policies until the storm is no longer a threat or passes.  Since home loan approval is typically contingent on obtaining a homeowners’ insurance policy, buyers who find themselves without insurance bound during these moratoriums may have to extend the closing date until the insurance carriers start binding policies again.

To prevent these issues, a good Realtor will advise a buyer to shop for and purchase a policy well in advance of closing.  Once a closing date is confirmed, buyers should contact their insurance agent and bind the policy as early as possible during Florida’s hurricane season. So in summary…Don’t delay! Bind right away!