Homeowner Hazard Insurance and Tropical Storms

Coastal Storms and Real Estate

A word about tropical storms:
NOAA recently announced Tropical storm Fay in the Caribbean. Once this announcement was made, all homeowner property hazard insurance applications are subject to being frozen. No new policies are written until the storm passes. The weather system does not need to be classified as a hurricane for this to occur.
Insurance companies operating as they do, I would assume this business practice, in some ways, applies to all ocean coastal areas in the USA. I only have direct knowledge with Florida, USA.
As a buyer or seller, if your real estate deal has a mortgage contingency, you cannot close without the soon to be purchased property having hazard insurance. If the buyer was waiting for the insurance policy to be underwritten on closing day, and NOAA announces a tropical storm, and this tropical storm lasts through your scheduled closing date, and that insurance policy wasn’t underwritten, you will not close until NOAA lifts it’s warning.
How is this avoided?
As a buyer, during storm season, do not delay having your pending "new property" underwritten by an insurance company in advance of closing date.
As a seller, Make sure your real estate representative is on top of things and in communication with buyer or buyer’s representative.
Remember… Tropical storm / No hazard insurance / No closing.
Link http://www.noaawatch.gov/