Real Estate Agent with Coldwell Banker Vanguard Realty - 904-673-2308


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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About the Author: Sharon Alters works with her husband, Frank. They are in the top 5% real estate agents for production in the Jacksonville Florida area, specializing in Military and Corporate Relocation in the Fleming Island, Orange Park, St. Johns, St. Augustine and Beaches areas. Their local knowledge can help Relocating Buyers find the perfect lifestyle, whether it is a Castle on the Ocean, or a Cottage in the Country. 

Call/text 904-673-2308 or sharon@teamalters.com

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Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I meet a couple a few months ago, that came to me for a mortgage. In the procewss, I asked them, what they pay for homeowners insurance, they said they don't have any. Since they didn't presently have a mortgage they said, they didn't see any reason to purchase any. Hard to believe, but I run into these situations from time to time.


Jun 08, 2012 08:51 PM #1
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Yes, this is really important information here in our state!!! Suggested for a feature!!!

Jun 08, 2012 09:30 PM #2
Insurance Solutions Unlimited,LLC
Insurance Solutions Unlimited, LLC - Winter Haven, FL
Insurance Solutions Unlimited,LLC

Great post Sharon & Frank! We try to educate agents and buyers to secure quote upon contracting. many time we are doing quote prior to them putting an offer in.

Jun 08, 2012 10:01 PM #3
Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Rockledge, FL
... a small office, delivering big service!

I found this out about auto insurance a couple of weeks ago when you were getting "stormed" on...no property damage insurance of any type including autos!

Jun 08, 2012 10:12 PM #4
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Frank and Sharon, good information for potential home owners in your area. Learned something new today. Thanks.

Jun 08, 2012 10:13 PM #5
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

Never heard of such a thing but if this needs to be done this way you have no choice.

Jun 08, 2012 10:50 PM #6
Kwee Huset
Kwee Huset Realty - Venice, FL
Venice Florida Homes For Sale

Frank & Sharon, I will add contingent upon the buyer get a Homeowner, Flood and Windstorm Insurances coverage on the property before closing in the contract,  so that the buyer is protected.

Jun 08, 2012 11:43 PM #7
Raymond Denton
Academy Mortgage Corporation - Irvine, CA
Simple Man

I'm confused, Frank, do you mean they should pay for the policy before Escrow closes?

My clients always get their homeowners insurance policy first because they can't receive a clear-to-close until after the Underwriter has approved their policy.  But they don't pay for it until funds distribute.  When the Insurance Company receives their money, the policy "binds" and becomes effective.

Are you saying they should bind their policy prior to Escrow closing?

Jun 09, 2012 12:22 AM #8
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Joe, that is a risky thing to do.

Barbara-Jo, thanks for the Suggest - it worked!

National Insurance, we definitely talk to them about insurance as soon as we have a contract.


Jun 09, 2012 03:32 AM #9
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Gary, did not know that. Thanks!

Michael, glad to share that with you. Many people do not know about this and I didn't know that auto insurance was suspended as well.


Jun 09, 2012 03:34 AM #10
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Robert, it is the rules the insurance industry plays by. We can't close without insurance.

Kwee, yes, that would be a good idea!



Jun 09, 2012 03:43 AM #11
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Raymond, great question! Homeowner's insurance is normally paid outside of closing here in Florida, Yes, I am saying they should bind their coverage prior to escrow closing.

I just checked with one of the insurance agents we recommend and he said that a buyer has 10-30 days to pay for the insurance after they order it and the coverage is still biinding if a named storm comes along before they pay.

Jun 09, 2012 03:43 AM #12
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

EXCELLENT post with timely info, Frank and Sharon.  All of it making complete sense, when you take the time to think about it.  Being from IL, I can so commiserate with you about changing weather and weather patterns ... yet we do not have this little quirk with our insurance policies.  (I'm sure we have our own though!)  I appreciate the education you provide with this post ...

Keep the great info coming!


Jun 09, 2012 06:24 AM #13
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Frank and Sharon- great information.  So often people wait and once that weather gets close to us, it's too late for coverage. 

Jun 09, 2012 11:08 AM #14
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Frank and Sharon- Our lenders make a habit to tell the buyers to get started on the quest for insurance. I had a buyer ask me the other day if he was holding up the loan closing because his insurance certificate wasn't turned in yet. He's not cloisng until the end of the month.

Jun 10, 2012 08:44 AM #15
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