Binding Your Insurance in Advance Is Critical
- You can’t get insurance if a named storm is near, and you can’t close without insurance.
Insurance carriers will not bind flood or property insurance policies once a named storm is within a certain proximity (as defined by the carrier) to the property. A named storm can include a tropical storm or hurricane.
Get your policies BOUND as soon as possible during hurricane season. Don’t wait until close to closing when it will be too late if a named storm develops. If your house is under contract, ask your agent to confirm that the buyers have bound their policies.
- You can’t make changes to an existing policy or increase coverage when a named storm enters the risk zone. The risk zone in the Gulf is determined by the insurance company and may vary from company to company. However, they are all very close.
If you’ve made improvements to your property, but they are not listed as covered items in your policy, insurance will not cover damages. That’s why it’s important for sellers to make sure you review and update your policy for:
- New pool
- New addition to your home
- New buildings added to your property
- Upgrades to kitchen, baths or other aspects of your property
- Any other improvements
Again, BIND your policy changes as soon as possible during hurricane season. You don’t want to regret not taking care of this “housekeeping” detail.
What does binding your insurance mean?
Binding means that coverage is in place, although a written policy has yet to be issued. Often, binding takes place through a verbal agreement, in person or over the telephone. However, an insurance quote is not a binder.
If you live in the Greater New Orleans region and would like to discuss your property and casualty insurance needs with an licensed insurance agent, Latter & Blum Insurance Services can help.
2626 Canal St.
New Orleans, Louisiana 70119
Phone: (504) 569-9909
Toll Free: (800) 254-9909