By Thomas Whitfield · Contributing Writer
Published
Answer in brief
Insurers freeze new policies and coverage additions as soon as a storm watch is issued. The restriction is legitimate, universal and predictable, which means the only defence is to have the coverage you want in place before June.
Each year around the first named storm, we get the same question: "My insurer won't let me add comprehensive—is that legal?" It is. It is called a binding restriction, and every insurer doing business in Florida uses one.
What it is
A binding restriction is a temporary moratorium on new policies and coverage increases in counties under a tropical storm or hurricane watch or warning. It typically begins when the watch is issued and ends a few days after the storm has passed or the watch is cancelled. Existing coverage is unaffected.
Why it exists
Insurance prices risk that has not happened yet. If people could buy comprehensive the day before a hurricane and drop it the week after, the premium for everyone who carries it all year would have to rise to cover losses that were effectively certain. The restriction keeps the pool fair.
What to do instead
Decide in spring whether each car needs comprehensive and put it in place then. The hurricane and flood coverage guide covers the rest of the preparation.
Guides referenced in this post
Guide
Car Insurance for Hurricanes and Floods in Florida
Which auto coverage pays for hurricane, storm surge and flood damage in Florida, how binding restrictions work, and how to prepare before a storm.
Guide
Full Coverage Car Insurance in Florida
What full coverage means in Florida, when you need it, how to choose deductibles, and how hurricane season affects comprehensive coverage.