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As the fifth anniversary of Hurricane Katrina passes this week, and with Hurricane Earl on the horizon for the Carolinas, now is the perfect time to address how an impending hurricane or storm can affect insurance coverage for customers who are planning on closing on a home.

As soon as a storm is “named,” insurance companies reserve the right to temporarily revoke binding authority for the agents who sell their products and coverages until the danger of the storm has passed.  After the storm leaves the area of concern, the insurance companies reinstate their agent’s ability to offer and sell insurance.

Remember!  Because the Carolinas are coastal states, the ENTIRE state can be included as areas of concern to the insurance companies, even if the storm only reaches the coasts of North and South Carolina.  Don’t assume that because your client’s property is inland, that this does not apply to them.

As long as a client has already been established and confirmed coverage has been bound prior to our binding authority revocation, your scheduled closing will occur with no problems from the insurance side.  However, if your client is closing during a time when the storm is present in our area and has not already confirmed that insurance coverage is in place, we may not be able to provide any coverage until the storm passes and our authority has been reinstated.

If our authority to offer coverage is revoked temporarily due to Hurricane Earl, we will notify all offices immediately to keep you informed.

Contact your Insurance Trusted Advisor if you have any concerns or questions regarding the impending storm and how it may affect you and your closings.