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Binding Restrictions on Insurance Policies – What Does That Mean?

Binding Restrictions on Insurance Policies – What Does That Mean?

Binding Restrictions on Insurance Policies – What Does That Mean?

By Linda Frania (Avalon Insurance Group, Inc.)


With Hurricane season in its peak months, August through November, the possibility of a binding restriction being imposed by insurance companies for a particular county or area, is quite likely.

A binding restriction is when an insurance company temporarily prohibits the binding of new policies and increasing limits in existing policies, for a period of time. (You can still receive quotes from your insurance agent during a binding restriction, however). These temporary binding moratoriums typically occur in the face of impending natural disasters, such as with hurricanes, for example, and are lifted after the threat has passed. Attempting to get a new homeowners or flood insurance policy in force (bound) when there is a binding restriction in place for your county or area is not usually possible unless it is required for a home closing.

The best course of action in any situation is usually a proactive one. So, when it comes to protecting your valuable assets, such as your home and belongings, having your homeowners and flood insurance policies already in place will help ease the uncertainties you may experience in the wake of an impending hurricane such as we saw with Hurricane IRMA last year.

What should you do?

  • Don’t wait. If you don’t have a homeowner’s insurance policy or flood insurance policy now, call your insurance agent today to get one in place. A homeowner’s policy can be written and bound within hours. A flood policy can be written as quickly, but unless it is for a new home purchase, all NFIP flood policies have a 30-day waiting period after payment has been made before it goes into effect.Many Private Market Flood policies, however, have a waiting period of 10 days or less, or no waiting period at all.


  • If you already have insurance in place, now is a good time to review your policies to review what’s covered and discuss with your agent if any changes should be made.


  • Keep a copy of your policy, along with your insurance agent’s contact information, in a safe place and easily accessible should you need it.

You’ve worked hard for your home and the things inside it.  Call your insurance agent today and let them help you get the protection you need for your home and belongings.

Avalon Insurance Group, Inc is committed to helping you stay informed and to helping you save money on your insurance. If you have any questions about your home or auto insurance policies, give us a call at 239-275-3888, our licensed Agents and licensed Customer Service Representatives are ready to help.