Hurricane Season Preparedness

Listen Now

Current Emergency Status

There are currently no active Hurricane alerts

Office Locations and Status

Altamonte Springs – Normal Operations
Celebration – Normal Operations
Lakeland – Normal Operations
Merritt Island – Normal Operations
Ocoee – Normal Operations
Orlando – Normal Operations
Winter Park – Normal Operations

Information Lines

Main Switchboard 407-930-9881 – Open
Emergency Line 407-986-0755 – Open/Activated
Local Emergency Radio Station: 1650 AM
Local Weather Information: National Weather Service

Hurricane Season in Florida is June 1 to November 30

You may think that weather hazards and title insurance are mutually exclusive. In fact, severe weather events like hurricanes can have an impact on the process of buying, selling, or refinancing property. For example, there can be difficulties with arranging Homeowner’s Insurance coverage and closings can be delayed.

There are steps that can be taken during hurricane season to minimize the potential impact of a storm on the closing process and avoid the chance of delayed closing on a home. The first thing to do is stay updated with any potential developing situations.

At the Closing Agent, we do our best to help our clients close their deals smoothly and on time. As soon as we receive notification about any interruption in our service, we will proactively contact our customers and Realtors® to keep everyone up-to-date on our operations via a combination of email communications, phone calls and automated messages.

IT IS VITAL TO LOCK IN YOUR HOMEOWNERS INSURANCE BEFORE HURRICANE SEASON BEGINS

Don’t get stuck in “The Box”! The Box is a term adopted from the marine insurance industry that refers to a designated area in the middle Caribbean that has a high risk of hurricanes in the summer months. The term is now also used in the Homeowners’ Insurance industry to refer to the 16,000 square mile “Hurricane Box” that extends from the Atlantic Ocean inland to cover Florida and the adjacent states.

During hurricane season, June 1st through November 30th, it is difficult if not impossible to buy insurance coverage for Windstorm or Hurricane damage as well as certain other types of coverage. If binding coverage is in place, insurance companies will suspend it if a named tropical storm or hurricane enters the Box. The expression “The storm is in the Box.” refers to this situation. Restrictions on the issuance of coverage also apply anytime a tropical storm or hurricane watch or warning has been issued by the National Hurricane Center.

Insurance companies may have differing specifications for the geographical limits of the Hurricane Box. However, Florida homeowners, buyers, and sellers are certainly inside the Box during hurricane season.

Avoid Getting Stuck in The Box!

Buyers working on the purchase of a new home, and homeowners considering revision to their existing coverage both need to avoid the Box. No insurance company wants to write a homeowner’s policy when the risk of loss due to hurricane damage is high. It is critical for buyers to lock in coverage well before the closing date. Existing coverage should be modified well outside of hurricane season or at least during a quiet spell.

The rules covering issues related to hurricane season and the Box are complex. It is best to discuss details with the experts at your insurance agency and title company. Finding out in advance what will be required to bind new coverage during hurricane season is essential to avoiding delays during closings that are scheduled during hurricane season.

The Closing Agent has expert local knowledge about all aspects of Florida real estate closings. In the event of a storm, we have a “Business Continuity Plan” in place to address our clients’ concerns before, during and after the storm. We also have multiple offices and a redundant back-up operations center located outside of Florida. We have arranged for our website, social media profiles, phone greeting, on-hold recording, and emails to alert you to any changes in our business processes that could impact you and your transaction.

We care about our clients and are concerned for their safety during hurricane season. If you don’t have your own personal Hurricane Preparedness Plan in place, please check out the emergency preparedness website from the National Hurricane Center for assistance.

If you need information or assistance related to your closing during hurricane season, call The Closing Agent at 407-930-9881.

Hurricane Preparedness

Hurricane Title FAQ

DOES A BUYER HAVE A RIGHT TO REINSPECT THE PROPERTY?

Unfortunately, the Buyer does not maintain any right to reinspect the Property after Hurricane Irma under the FR/BAR after the initial inspection period has expired. However, pursuant to Paragraph 11, “Property Maintenance,” the Seller shall have an obligation to maintain the Property, including, but not limited to, the lawn, shrubbery, and pool in the condition existing as of the effective date (“AS IS Maintenance Requirement”). Therefore, the Seller must keep the property in the same condition existing as of the Effective Date.The Buyer can also perform a walkthrough on the day prior to Closing. Pursuant to Paragraph 12(b), Buyer may perform a walkthrough inspection of the Property…and to verify that Seller has maintained the Property as required by Paragraph 11, as aforementioned.

RISK OF LOSS AND SELLERS DUTY TO REPAIR. IF THE PROPERTY IS DAMAGED, IS THE BUYER REQUIRED TO CLOSE?

FR/BAR Standard M: If the cost of restoration (including pruning or removing damaged trees) does not exceed 1.5% of the Purchase Price, the Seller is obligated to repair the damage and proceed to closing. In the event the restoration is not completed prior to closing, 125% of the estimate is to be escrowed. Foreseeable Issue: Who determines what “estimate” to follow for purposes of this term? The FR/BAR Contract is silent as to this term’s definition; therefore, we recommend that the parties attempt to procure at least two estimates for the restoration of any damage. Note: Seller’s sole obligation with respect to tree damage by casualty or other natural occurrence shall be the cost of pruning or removal.

WHAT IF THE BUYER STILL WANTS TO CLOSE, EVEN THOUGH THE DAMAGE EXCEEDS 1.5% OF THE PURCHASE PRICE?

In the event the damage to the Property exceeds 1.5% of the Purchase Price, the Parties may proceed to closing if they agree. In the event the cumulative damage exceeds 1.5% of the Purchase Price, it is advised that the Seller submit a claim to their homeowner’s insurance policy and assign the insurance claim to the Buyer. If the Parties wish to proceed this route, Barry Miller Law can prepare the Seller’s assignment of the insurance claim to the Buyer for a flat fee starting at $495.00.

DOES FORCE MAJEURE ALLOW FOR THE INSPECTION TO BE DELAYED?

Force Majeure is governed by Standard G of the Contract. Force Majeure means: hurricanes, floods, extreme weather, or other acts of God…which by exercise of reasonable, diligent effort, the nonperforming party is unable in whole or in part to prevent or overcome. If it’s determined that Force Majeure applies, the Parties shall not be required to perform any obligation under the Contract so long as performance or non-performance or the availability of services or required approvals essential to Closing cannot reasonably or diligently be procured. Under this standard, the Closing Date will be extended a reasonable time up to seven (7) days, after the Force Majeure no longer prevents performance. So, a lack of power to the Property would likely prevent performance under the Contract and would likely constitute a Force Majeure.

WHAT IF THE DAMAGE IS UNDER 1.5% AND THE BUYER’S LENDER REFUSES TO CLOSE?

The answer to this question is contingent upon the language contained in the Loan Approval. However, keep in mind that under the latest version of the FR/BAR the Buyer doesn’t need to provide a copy of the Loan Approval and therefore the Seller may not know the Property related conditions contained in the Loan Approval. Due to this flaw in the Contract, agents should, in the future, include the following provision: Buyer shall provide written verification from Buyer’s mortgage broker or lender of the Loan Approval, in accordance with the terms set forth in this Contract, to Seller. If Buyer fails to obtain Loan approval within the time set forth and thereby terminates this Contract, Buyer shall provide written verification of same and the reason for such denial to Seller.

WHAT IS “ESSENTIAL” FOR CLOSING?

Under Paragraph 5(b), Closing will be extended if Force Majeure causes “services essential for Closing to be unavailable.” “Services essential for Closing” are not defined in the Contract; however, the Contract does state that availability of utilities is essential.

WHAT IF THE BUYER REQUESTS TO EXTEND THE INSPECTION PERIOD UNDER FORCE MAJEURE?

If the services necessary to perform the inspection are able to be procured by the Buyer through reasonable, diligent efforts, (i.e. inspector), there would not be any delay or extension of the Inspection Period; however, if there’s no power to the Property and the Inspection Period has not expired prior to the Force Majeure, the Inspection Period could be extended for a reasonable time not exceeding seven (7) days.

WHAT NEEDS TO BE IN WRITING?

Please remember that anything agreed to must be in writing and signed by both parties. Agents must remain mindful and be cautious that they do not draft legal terms and conditions which may constitute the unauthorized practice of law (UPL).

Current Emergency Status

Office Locations and Status

Information Lines

Hurricane Season in Florida is June 1 to November 30

IT IS VITAL TO LOCK IN YOUR HOMEOWNERS INSURANCE BEFORE HURRICANE SEASON BEGINS

Avoid Getting Stuck in The Box!

Hurricane Preparedness

Hurricane Title FAQ

Your Closing Partner

We Bring Peace Of Mind To The Closing Table.

Keep Up To Date

TCA News Hub

Creating A Lady Bird Deed In Florida

Solar Panels Contract Pitfalls

Escrow Agent Versus Closing Agent. What’s The Difference?

The TCA Newsletter.