Texas weather changes fast. One minute the sun shines, and the next minute, a flash flood warning flashes on your screen. When severe weather heads your way, you might want to check your car insurance. However, waiting until a storm gets close creates a huge problem. This is because car insurance companies usually put a “binding moratorium” in place. As a result of this moratorium, you could face massive repair bills.
What is a Binding Moratorium in Home and Car Insurance?
First, let us explain what a binding moratorium actually means. A moratorium is simply a temporary freeze on new policies. When the National Weather Service issues a severe storm or flood warning, insurance companies stop selling new car insurance policies in that specific area. In addition, they will not let you change your current policy. For example, you cannot add comprehensive coverage or lower your deductible until the storm completely passes and your vehicle is undamaged.
Why Do Insurance Companies Use These Rules?
You might wonder why insurers use these strict rules. Basically, car insurance exists to protect you from future, unexpected problems. If people only bought coverage when a flood was guaranteed to hit, the insurance companies would stand to suffer huge claims. Therefore, they use moratoriums to keep their business stable.
Why You Need Coverage Early
As a result of these rules, you must set up your insurance policy before the dark clouds roll in. If rising water damages your car, you need comprehensive coverage to pay for the repairs. Sadly, if you try to buy this coverage during a moratorium, the company will say no. Thus, if your car is damaged in the flood, you have to pay the entire repair bill yourself.
How a Local Home and Car Insurance Agent Can Help
To avoid this stressful situation, you should plan ahead. A local independent insurance agent like AlphaSure Affordable Insurance Services can help you shop for the best car or home insurance. We understand Texas weather risks, and we can help find a policy that fits your budget.
