Why Florida Insurance Companies Stop Binding Policies When A Hurricane Is Named
Florida’s stunning coastlines and tropical climate come with a price—hurricane season. If you’re buying a home or trying to update your insurance coverage during this volatile time, you may run into a frustrating but important roadblock: insurance companies temporarily stop binding policies once a storm is officially named.
What Does "Binding" Mean?
In insurance terms, binding a policy means putting coverage in place—either temporarily or permanently—before a formal policy is issued. It's the point at which the insurance company agrees to provide protection.
What Happens When a Storm Is Named?
As soon as the National Hurricane Center names a storm (e.g., "Tropical Storm Emily" or "Hurricane Michael"), most insurance companies in Florida stop writing or binding new policies for homeowners, flood, and windstorm insurance. This freeze typically applies to:
New homebuyers
New flood insurance applications
Policy changes or increased coverage on existing homes
This moratorium remains in effect until the threat has passed—usually when the storm is no longer forecast to impact Florida or has dissipated.
Why Do Insurers Do This?
It’s all about risk management. Once a storm is named, its path becomes more predictable—and so does its potential for damage. Insurers don’t want to take on new risk when a hurricane is potentially just days away from making landfall. This pause helps protect the financial stability of insurance carriers and prevents opportunistic behavior from people trying to get last-minute coverage only when disaster is imminent.
What Does This Mean for Homebuyers?
If you're under contract to buy a home in Florida during hurricane season (June 1 – November 30), it’s critical to:
Secure homeowners insurance early in the process—ideally right after your offer is accepted.
Don’t wait until the last minute to bind coverage.
Consider wrapping insurance contingencies into your closing timeline, especially if a storm is forming.
What About Flood Insurance?
Flood insurance (typically issued through the National Flood Insurance Program, or NFIP) also has a 30-day waiting period in most cases. You can’t add flood insurance days before a hurricane and expect immediate coverage, so plan ahead.
Final Tip:
Buying in Florida means preparing for hurricane season. Speak with your insurance agent early, lock in your policy before any storms develop, and protect your closing timeline. Once a storm is named, the insurance window closes — and your deal could get delayed.