Hurricane Dorian is in our rear-view mirror now, but did you know that named storms can impact your ability to close on your home? Here in North Carolina the insurance companies actually have a rule that prevents new policies from being written if a named storm (Hurricane or Tropical Storm) is within a specific zone. You could be in Raleigh and still be affected by this rule, because it’s a statewide rule.
In The Zone
As you can see, this zone stretches all the way to the top of the Dominican Republic! So if there is a named storm that enters this zone, insurers can’t write policies or even add coverage to existing policies until the storm clears this zone. The rule states:
No new or increased coverage shall be bound or application for new or increased coverage be accepted after 12:01AM the following day when the center of a designated named storm is located within Longitudes 65º West and 85º West, and Latitudes 20º North and 37º North. The term “designated named storm” is a windstorm designated as a hurricane or tropical storm by the National Weather Service.
What Can You Do?
Bear in mind that if you can’t get insurance on your home, you can’t close on your home. This means that for a lingering storm you could be delayed several days before you receive the keys to your new house, or funds for your completed listing. Buyers could always speed along the process by making certain the insurance company has all of the information they need early in the process. Send that application in as early as possible during hurricane season! You could also ask the insurer to bind the policy ahead of time and prepay a certain amount – you would be surprised how many insurers will work with you on this. The most important thing is selecting a real estate agent who takes factors such as this into consideration and will help navigate you through the real estate transaction right up until closing.
Links and Info
Hurricane season lasts from June 1-November 30.
If you are interested in donating to assist in the Dorian recovery on Hatteras and Ocracoke, the Outer Banks Community Foundation provides the most direct assistance to those who need it.
You can donate here-
https://www.obcf.org/donate-now/
NC Joint Underwriter’s Association rule page for named storms-
https://www.ncjua-nciua.org/html/restrictionsArchive.htm