WHY SHOULD I SECURE MY HOMEOWNER'S INSURANCE NOW? BUYERS FAQ
Florida is a fickle state with weather - they say if you don't like the weather, wait five minutes.
Florida is also a state with a lot of opportunities for 'named storms.'
When a named storm is 500 miles from the coast of Florida (they call this 'in the box'), then all homeowner's insurance underwriting is suspended until the storm passes. Insurance companies do not want to risk a major storm hitting our shores just having written tens to hundreds of new policies.
Hurricane season begins June 1 through November 1, but there can be Tropical Storms and Nor'easters that fall outsides those dates, and every time a storm ranks a name, insurance policies can't be written.
So what does this mean to my home purchase?
If you don't have your insurance in place and a named storm comes, you can't close on your home. Mortgage companies will not fund a loan without homeowner's insurance. You may have to wait several days and depending on your contract, it may cost you money. New construction and foreclosure contracts specify that if the Seller is ready to close and the Buyer is not on the agreed date, it can cost the Buyer a daily penalty until settlement.
So make securing homeowner's insurance near the top of the list, along with applying for the mortgage. Then you can relax, knowing that even if a storm is in the Atlantic, it won't delay your home purchase.
Give us a call for recommendations for homeowner's insurance at 904-673-2308.
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