From June 1st to November 30th is Hurricane season, which means that it will be slightly more difficult to buy certain insurance coverage. If a named tropical storm or hurricane enters an approximately 16,000 sq mile box extending over Florida and all adjacent states and well into the Atlanic Ocean, then the insurance companies will suspend binding coverage. They will refer to this occurrence as “the store is in the box.”
Each insurance company may have their own definition of “the box.” One this is certain, if you live in Florida or you are about to buy a house during hurricane season, you are inside “the box.”
How to Avoid the Box
If you are purchasing a new home or revising your existing Homeowners Insurance, then it is essential to avoid “the box.” Insurance companies do not want to extend homeowners insurance to you immediately before a hurricane. The key is to lock in insurance well before your scheduled real estate closing date. To avoid delays in closings that are scheduled during hurricane season, we suggest that you find out in advance how to bind the new coverage, as well as what requirements are imposed. This could mean paying for the coverage in advance.
