WHY SHOULD I SECURE MY HOMEOWNER'S INSURANCE NOW? BUYERS FAQ

By
Real Estate Agent with Coldwell Banker Vanguard Realty

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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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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Topic:
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Rainmaker
971,166
Sharon Alters
Your Fleming Island Relocation Agents.
Coldwell Banker Vanguard Realty

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

Kwee, yes, that would be a good idea!

 

 

June 09, 2012 10:43 AM
Rainmaker
971,166
Sharon Alters
Your Fleming Island Relocation Agents.
Coldwell Banker Vanguard Realty

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.

June 09, 2012 10:43 AM
Rainmaker
638,389
Gene Mundt
Mortgage Lender - Chicago/Chicagoland Mortgages
www.genemundt.com

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!

Gene

June 09, 2012 01:24 PM
Ambassador
1,353,689
Kathy Streib
Home Stager - Palm Beach County,FL -561-914-6224
Room Service Home Staging

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

June 09, 2012 06:08 PM
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865,541
Debbie Reynolds
Your Dedicated Clarksville TN Real Estate Agent
Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730

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.

June 10, 2012 03:44 PM
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