When severe weather, hurricanes, wildfires, or other natural disasters are on the horizon, insurance carriers often issue a moratorium. But what does that actually mean for real estate investors? Watch the video below to learn more about the impacts of moratoriums and why it’s crucial for property investors to be prepared ahead of storm season.
Transcript:
When severe weather or natural disaster is forecast, insurance carriers may issue a moratorium for the affected areas.
A moratorium imposes a temporary pause on writing new policies and making changes or adding endorsements to existing ones.
For real estate investors, this means you won’t be able to adjust limits, add protections, or place coverage on newly acquired properties in the area until the moratorium is lifted.
These temporary suspensions of writing or changing existing policies are typically short-lived and designed to help stabilize the insurance market during high-risk periods.
However, if a property’s risks weren’t fully addressed beforehand, a moratorium could leave gaps in protection that can’t be resolved until it’s lifted.
National Real Estate Insurance Group identifies the risks your properties face from the start, so you don’t have to worry about scrambling for insurance during a moratorium.
