Did you know that a “named storm” in the Atlantic Ocean can delay your real estate closing in eastern North Carolina?
The wind and hail portion of your homeowner’s insurance in eastern North Carolina is underwritten by the North Carolina Joint Underwriting Association (NCJUA). They have a policy that restricts the underwriting of insurance policies when a named storm is in a certain area that is designated by the NCJUA. The policy states that no new or additional coverage insurance policies will be issued until that tropical storm or hurricane either leaves the designated area or weakens to less than 39 mph winds. You can see the “box” above.
A storm is named by the National Weather Service when it reaches tropical storm strength with winds of 39 mph, and becomes a hurricane when its wind speed reaches 74 mph.
Why does this impact real estate closings? When a home transfers ownership, the home buyer’s mortgage company will require homeowner’s insurance in place to take over when the current owner’s insurance ends. No insurance, no closing. The only exception is when a buyer pays cash for the home, then they can choose to not have insurance, at their own risk.
How do I prevent a delay in my closing? If your closing is due to happen between June 1st and November 30th, the Atlantic Hurricane season, then keep an eye on the weather report in the weeks prior. If it looks like there is a possibility of a named storm entering the box or developing inside the box, call your insurance company and get the policy underwritten and paid for in advance.
This one simple preventative measure can ensure that you are snug and protected in your new home enjoying a rainy hurricane day off from school and work, instead of stressing in a hotel room with all of your personal belongs in a moving truck. Information on hurricane preparedness.