It has been awhile since we have been hit by a hurricane, so let’s review one of the most important things a buyer needs to think about during hurricane season; insurance.
Tropical Storm Erika may turn into a hurricane over the weekend. As such, it may affect our closings depending on the path and progress of the hurricane.
Anyone who has a closing next week needs to remind their buyers to have bound coverage on the properties they are purchasing next week.
What is “bound coverage” (sometimes referred to as an insurance binder), and what does this have to do with hurricanes?
The approval process for insurance can take awhile to be completed, and when hurricanes approach an area, insurance companies may stop writing policies for a certain timeframe. To avoid being caught in that window, you can still get coverage while waiting final approval. “Bound coverage” allows you to be protected under the policy you’re applying for even before your application is approved.
This coverage is extended based on the assumption that the applicant will be approved for the insurance plan that he applied for.
Have your buyers check with their insurance provider, as they may be required to pay their entire first premium in order for the bound insurance to become active.
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My Agent Greg 