Hurricanes, gales, tropical storms, oh my! The stormy season arrives like clockwork every year, and most homeowners in Florida are protected from these natural disasters by some form of windstorm insurance. But those in the middle of a move or purchasing a home can find themselves in insurance purgatory during a bad storm.

Private insurance carriers will write policies for windstorm coverage until a storm watch or warning has been issued. Citizens Property Insurance Corporation-a state run carrier which replaced the Florida Windstorm Underwriting Association (FWUA) in 2002-- will write windstorm coverage policies until a hurricane or tropical storm enters "the box" it has designated as its "no-write zone." (See map at left). That means homeowners who have waited until the last minute to buy coverage — and the unfortunate people trying to move into a new house — will find "closed" signs at the Citizens when they need protection the most.

When Citizens began operations on August 1, 2002, it combined the former Florida Windstorm Underwriting Association (FWUA), and the former Florida Residential Property Casualty Joint Underwriting Association (FRPCJUA).

The 'box' for consumers is very restrictive with most insurance carriers, but not as restrictive as for Citizens. Given past experience with storm damage, many carriers are issuing highly restrictive policies for homeowners, with strict limitations as to when applications for those policies will be accepted. Once a storm has received a formal designation as a tropical storm or a hurricane and begins to move toward landfall, the ability of a homeowner to purchase coverage drops dramatically.

The National Hurricane Center (NHC) in Miami issues watches and warnings for storms in the Gulf area. The NHC typically posts watches 36 to 48 hours before a faster hurricane or tropical storm will hit land. At that point, insurance carriers will stop writing new policies. However, a faster storm might not yet be within Citizens' box.

Watches and warnings are cancelled when the imminent danger of the storm has passed. Most insurance carriers then resume their policy writing. However, many carriers require a survey of property that they are going to insure after a storm. That can take anywhere from 36 to 48 hours to complete, depending on availability of personnel. Citizens, using the same guidelines as the FWUA, waits a full 48 hours after the storm has left its box to resume writing new policies.

Whose advantage?

Thus, when a hurricane threatens the Florida coast, neither private policy seekers nor Citizens policy seekers are at an advantage for this simple reason: No one will write coverages when a storm appears imminent.

Citizens will provide coverage all over the state. It will also sell wind-only coverage in the former FWUA areas. Citizens insures more than 600,000 people in 29 of Florida's 35 coastal counties, generally because no one else will. Higher premiums and more restrictive coverage await those who are forced to seek Citizens policies as a last resort. Citizens rates for full coverage will be substantially similar to the rates now charged by the FRPCJUA. These rates are based on the highest rates charged by the top 20 private insurers. Policyholders with wind-only coverage through the FWUA, who faced an increase of up to 40 percent on July 1, 2002 will see an increase of no more than 10 percent under Citizens.

Basic homeowner's policies cover wind damage in some way, but policyholders would be well-advised to secure their coverage in advance of hurricane season to avoid seeing their property ripping apart in the hurricane-force wind.