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Hurricane FLorida

Navigating Stormy Waters: Closing During a Storm and Maintaining Your Insurance

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As a looming tropical system threatens Florida’s Gulf Coast, we strongly urge you to take vital precautions to safeguard your loved ones and homes. It is essential to recognize the potential impact of an approaching storm on your property’s closing, and we encourage you to contact your insurance provider promptly to understand the prerequisites for obtaining insurance coverage for your impending property purchase.

If you have an upcoming closing, the buyer must ensure that their insurance is in effect, often called “bound.” “Binding” means that coverage is active even if the formal policy hasn’t been issued. Usually, individuals make binding arrangements through verbal agreements, in-person meetings, emails, or phone conversations. 

However, in many cases, coverage only activates once payment is complete. It’s crucial to receive confirmation from your insurance agent before suspending the binding authority. If not, you might only have access to insurance coverage after the tropical system has passed and the suspension is lifted.

In Florida, insurance companies have the authority to suspend the finalization of home insurance policies, also known as “binding,” a few days before an approaching storm. They can also maintain this restriction on obtaining coverage until after the storm has passed, even for a few days following. The specific timing of when Florida home insurance companies choose to suspend the option to secure coverage isn’t standardized; each company makes this determination independently.

If you have any questions related to “Force Majeure” or what to do if you cannot secure insurance, the following blogs may assist you, or you can contact your real estate attorney.

Seller Hurricane Preparedness Plan

Force Majeure Clauses in Purchase and Sale Agreements

Impact of Tropical Weather Systems on Insurance

Don’t Let Your Closing Get Blown Away!

For information on preparing your family for a major storm, please visit the American Red Cross for information on hurricane emergency preparedness kits and evacuation plans.


Berlin Patten Ebling, PLLC

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