What is a Moratorium for Renters Insurance?

Insurance companies can place a moratorium when purchasing renters insurance policies. However, many people do not know what this means and how this may affect them. Here at Perry Insurance Agency, serving the greater Vernal, UT area, we want to help you understand what this means. Here are two questions you may have about renters insurance and moratoriums.

What is a Moratorium for Renters Insurance?

A moratorium means that there is a hold on the effective date of a renters insurance policy. In most cases, a moratorium goes into place when there is a known weather event that is going to be hitting the area you live in. For example, if a hurricane is expected to strike, if wildfires are surrounding your county, or if heavy rain is expected to hit and cause potential flooding, a moratorium may be put into place. This prevents people from buying insurance solely to protect themselves against an element that is likely to hit. 

How Do You Know if There is a Moratorium on Renters Insurance?

An insurance company must notify you if there are any moratoriums in place when you buy your insurance policy. For example, the company may allow you to buy the policy today but must tell you it will not go into effect for 7, 15, or 30 days due to a moratorium in place. 

There are many companies that you can purchase renters insurance from. If you are looking for a policy in the greater Vernal, UT area, Perry Insurance Agency can help you. Contact us today to discuss your rental insurance needs and let us help you find the best policy for your situation in over 24 states.