Insurers Take a Pause from Writing Property Insurance in Wake of Tropical Storm Fay
Property insurers have taken a break from writing policies in Florida’s Broward and Palm Beach counties in the wake of tropical storm Fay, putting a temporary stay on home sales.
The state's largest property insurer, Citizens Property Insurance Corp., stopped accepting new policies or allowing changes to existing ones on Sunday evening when news of Fay heading for Florida hit. State Farm and Allstate, two other large insurers, also had temporarily suspended new business in the region.
Lenders require homeowners with mortgages to insure their properties, but some home closings continued as planned Monday for buyers who secured insurance last week.
Those who have not finalized property coverage likely will have to wait until storm watches and warnings are lifted in Florida after Fay passes. Still, that may not be so bad, said Randy Bates, president of the Realtor Association of Greater Fort Lauderdale.
"If I'm on the buyer's side, I'd be telling them to hold off until the storm is over," Bates said Monday. "Once they close, they inherit any issue, like a leaky roof."
Fay's arrival comes in the midst of a 2 1/2-year housing slump in South Florida. Sales and median prices have declined from a year ago, and analysts say it could be 2009 or later before the housing picture improves.
"We don't need any more glitches," David Dweck, a real estate agent in Palm Beach and Broward counties, said of Fay.
Published on August 20, 2008
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