Don’t Get Stuck in the “the Box”
Buyers - avoid the hassle and uncertainty by getting your insurance booked early. Sellers - the buyer’s insurance affects you. Make sure your Realtor is following up with the buyer to be sure they are getting their insurance early.
You may have heard of the term having a storm in the “box” when it comes to getting homeowners insurance. This term refers to when insurers stop issuing insurance when a hurricane or tropical storm is coming. The “box” referred to an area around Florida which might contain a named storm. Now what insurers typically use is official storm warnings issued by national weather services. If a county (Lee County) is under a warning for a tropical storm or hurricane, insurers will stop writing policies until the warning is lifted.
If you are in the process of buying a SW Florida home, you may find that you can’t close if you are getting a loan and your insurance is delayed. This can be very inconvenient if you have moving plans in place!
How to avoid "the Box"
Start working with your insurance company as soon as you go under contract to buy a home. The key is to lock in your insurance early to start on your closing date. You will not need to worry about storms the week of closing. Your insurance agent will work through all the details for you. If you are caught in the box, the normal Florida home sale contracts do have provisions to extend the closing. Your Realtor can advise you about those.
