Hurricane Irene is quickly approaching and although its center will not be right over Florida, I am sure we will feel it’s “breeze”. We all have seen the projected path and Florida is definitely in “the cone”.
There are thousands of real estate contract closings every week…but how can an event like this affect your upcoming closing? Here is something you need to know…
If you are a BUYER under an executed contract and your closing is within a week from now…I just hope you already secured your insurance policy.
One of the conditions to get your loan approved is to get a Homeowners Insurance. It is insurance that protects a homeowner and the lender against loss from fire and other hazards (including hurricanes) that may affect the value of their home.
As the Buyer, you will have to shop for an insurance policy and secure it BEFORE closing for it to be effective the same day you close on your new home. If you haven’t done so, and a tropical storm or a hurricane approches your area, then your closing is most likely to be delayed.
Insurance companies suspend all insurance bindings when a hurricane or a tropical storm approach what we call “the box”. This “box” contains the whole state of Florida, part of the caribbean and even parts of Louisina, Atlanta, Alabama, Missisippi, Texas and Mexico. Yes…it’s a big box!
Because no one can predict nature’s mood…it is very important to bind you insurance as soon as you are able after executing your contract, even if your closing is a few weeks away and especially during hurricane season. Like we always say…it’s better to be prepared than be caught short when mother nature pays a visit!
Everybody be save!