How Hurricane Season Can Affect Your Mortgage

For homeowners in hurricane-prone areas, the season from June through November isn’t just about tracking storms—it can also impact your mortgage, insurance costs, and even your ability to buy or refinance a home. Understanding these potential effects can help you prepare and protect your investment before the wind starts to blow.

1. Insurance Costs Can Rise

Mortgage lenders require homeowners to carry adequate property insurance. During hurricane season, insurance companies sometimes adjust premiums or limit new policies in high-risk areas. If you’re purchasing a home or refinancing, this could increase your monthly payment and affect your loan approval.

Tip: Get insurance quotes early and lock in coverage before an approaching storm limits availability.

2. Closing Delays During Storm Warnings

If a hurricane is forecasted near your property, insurance companies may place a “binding suspension,” meaning they won’t issue new policies until the storm passes. Since your lender needs proof of insurance before closing, this can delay your mortgage process.

Tip: If you’re under contract to buy a home, try to secure your insurance as soon as possible—don’t wait until closing week.

3. Property Damage Can Affect Value

If a hurricane damages your home before or during the mortgage process, lenders may require a new appraisal or additional inspections to ensure the property is still worth the loan amount. This can slow down the process and may even require renegotiating terms.

Tip: Keep documentation of the property’s condition and stay in touch with your lender if a storm is approaching.

4. Impact on Escrow Accounts

If you have an escrow account for taxes and insurance, hurricane-related insurance hikes or special assessments for repairs can cause your monthly mortgage payment to go up.

Tip: Review your escrow account annually and keep a small cushion in your budget for unexpected increases.

5. Financial Strain After a Storm

If a hurricane causes job loss, property damage, or temporary displacement, making your mortgage payment can become challenging. In these cases, some lenders offer forbearance or other relief options, but you need to request them promptly.

Tip: If you’re affected by a storm, contact your mortgage servicer immediately to explore available relief programs.

Final Thoughts
Hurricane season doesn’t have to sink your homeownership plans, but preparation is key. By securing insurance early, keeping communication open with your lender, and having an emergency financial plan, you can weather the storm—literally and financially.