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Florida’s No Bind Box Impacts Homebuyers

Hurricane season 2022 has commenced and it’s already raring to go. With the impending chance for tropical storm warnings to arise over the next few days, now is as good a time as any to shine some light on the Florida No Bind Box. Let’s quickly define and break down how this could potentially impact homebuyers with their next home purchase, especially if a closing date is looming on the horizon.


What is this box? It’s an estimated 16,000 square miles area surrounding the state of Florida that also extends out over the warm water of the Atlantic Ocean. The No Bind Box is prevalent during Hurricane Season, or June 1st through November 30th. Commonly, individuals would intentionally wait for a tropical storm threat to increase their policy coverage. With an increased exposure to potential risk, insurance companies implemented the no bind box as a preventative measure to mitigate their loss. It prohibits policy holders from amending their homeowners insurance coverage or even binding new policies during a time at which their potential risk is greater. The suspension of underwriting policies occurs when a named tropical storm enters an area within the no bind box and is in lieu of the projected path of the storm. As long as it’s in there, it doesn’t matter where it’s going. And, until it’s gone, the suspension stands. This can be an extended period of time, especially if there are multiple occurrences of tropical storm development.


For homebuyers, this means that for anyone preparing to close on their newly financed property, the inability to bind a new insurance policy could detour the plans to close as anticipated. If you are facing this scenario, be sure to communicate with your insurance company and make the necessary arrangements, possibly even bind early, to prevent this issue when tropical development is a known threat.

When you are looking to buy or sell your home, please call us at CENTURY 21 Alliance Realty 352-686-0000.

Source: https://www.c21oneblue.com/blog/433/Florida%E2%80%99s+No+Bind+Box+Impacts+Homebuyers

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