April 20, 2022

Tips for Closing on Your Home During a Hurricane or Tropical Storm

Did you know, as a named tropical storm or hurricane approaches, most insurance companies will suspend writing homeowner policies until the storm has passed? And often, the suspension will last a few days after the tropical storm or hurricane hits.

Even if the tropical storm or hurricane isn't moving directly to the area of your new home, insurers usually suspend issuing homeowner's policies for that area. Since there are no regulations governing suspension timeframes, your insurer can choose to hold off on issuing a policy right in the middle of the closing process. This means you won't be able to show proof of insurance to your lender, and your closing gets delayed.

Here are a few tips to help save your closing during hurricane season:

  • Consider binding your homeowners insurance prior to your closing date.
  • Thoroughly review your coverage and have a good understanding of what is and ISN'T covered. This brings us to the next point.
  • Be sure you've purchased flood insurance to go along with your homeowner's insurance. If you need or plan to purchase flood insurance, be sure to do so at your closing. You'll find yourself in a 30-day waiting period if you don't.
  • Be sure to check for coverage of any screened enclosures ahead of time.
  • Review your deductibles and make sure you are prepared for the out-of-pocket expense if a claim should occur.

The closing process can be stressful on its own, let alone adding the uncertainty of a tropical storm or hurricane. Don't be afraid to discuss your closing options with your closing agent. We will work with you and have options to help close on your home, even if you have to evacuate.

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