Bridget's Blog


How will Hurricane Irene Affect Real Estate and Mortgage Loans in Maryland?

How will Hurricane Irene Affect Real Estate and Mortgage Loans in Maryland?

I have a purchase loan scheduled to close on Friday.  The final condition is a copy of the new homeowner's insurance policy and invoice.  I contacted the insurance agent and was told that she has no "binding powers" due to the potential damage expected by Hurricane Irene's landfall. This means that until the severe weather system passes, and the insurance companies assess the areas of damage, they are not able to provide the insurance policy.

As most lenders are too busy to review conditions sent piece meal, not having the Homeowner's policy until next week will push back the final review and therefore the closing date.

Many folks in Maryland remember the devastation cause by Isabelle and the storm surges that caused flood damage where no one ever imagined flooding!  You sure can't blame the insurance companies!

I began to think about other Real Estate and Mortgage Loans that may be affected by Hurricane Irene.

1.  Wind, Rain, Flood, Fallen Tree Damage, etc. on properties that are under contract or on the market

According the the Uniform Commercial Code of Conduct, Risk of Loss remains with the seller. I believe this extends to Maryland Real Estate.

2.  If the property is vacant, does the homeowner's policy remain in force?  What about flood damage, is it covered? There are limitations to homeowner's policies, be sure to check the policy. 

3.  What if the owner doesn't have the money to make the repairs or pay the deductible?

4.  Lenders, and even buyers may require re-inspections prior to close on homes in any areas determined to have sustained damage.  

5.  Lenders may require drive-by or full appraisals to verify the property did not sustain damage.  The buyer may be responsible for this cost and should discuss it with their lender and their agent.

6.  Will your buyer be interested in purchasing a home, even one spared from damage, should there be other homes nearby that weren't so lucky?  If we learned anything from New Orleans, we learned that it takes time to re-build.

Maryland Realtors, Buyers, Sellers, and even those refinancing....TAKE HEED...As you prepare to batton down the hatches, and clear out the grocery shelves, and mix up the cocktails, Don't be surprised if the closing is delayed (at best) depending on the wrath of Hurricane Irene.

Hopefully the weather people have it wrong (as usual) and Irene will turn back out to sea or will hit land with little more than a sputter...we can all say an extra prayer!  Stay safe out there.  As they say...This too shall pass!

How will Hurricane Irene Affect Real Estate and Mortgage Loans in Maryland?

Warm Regards,

Bridget McGee  Maryland Mortgage Mama  NMLS# 196068  SWBC Mortgage.   410-960-2061 EHO or


If you are considering purchasing a home in Maryland and want to be sure you are mortgage ready, my brother Tony and I will be happy to help! We help to make the mortgage process a pleasure! 

If you already own your home, we are happy to provide a no-cost mortgage review to help you to determine if refinancing may be in your best interest.  Please contact me at 410-960-2061.

Comment balloon 6 commentsBridget "Mortgage Mama" McGee • August 26 2011 06:16PM


I lived in Bethesda when Isabel hit.  I was without electricity for 5 days.  That storm had long sustained winds that leveled many of the old trees in the ares which, these days have very shallow root systems that haven't the ability to anchor the hugh trees in a sustained wind. 

I bought lots of batteries today.

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley,, MD & VA Homes and Real Estate) almost 9 years ago

This isn't unusual for insurance companies to suspend new policies depending on what type of natural disaster is possible.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 9 years ago

How frustrating Bridgette but not surprising given the amount of damage they are expecting.  Hopefully it passes through at a lot less velocity than expected and you can get your client to the closing table some time next week!

Posted by Rebekah Radice, Social Media Marketing, Coaching & Training (Imagine WOW! Digital Marketing Agency) almost 9 years ago

Hi Bridgette, a great post on being prepared for things than can happen should the Hurricane Irene unleash some heavy damage. I'm hoping like you and everyone that it will not be as bad as expected. My thoughts are with those living in it's path. No one really thinks about these things, so good to be ones toes with homes that are not only under contract, but vacant with absentee owners.

Posted by Cindy Westfall, ABR,GRI Your Tualatin & Portland Metro Real Estate (Premiere Property Group,LLC Portland Metro & Suburbs Oregon) almost 9 years ago


I'm thinking about that too. One buyer supposed to settle next week, and one seller as well. I'm keeping my fingers crossed that nothing goes wrong with the homes.


Posted by Richard Iarossi, Crofton MD Real Estate, Annapolis MD Real Estate (Coldwell Banker Residential Brokerage) almost 9 years ago

Hi, Bridget

We're holding our breath down here, too.  Best wishes for a quiet, calm weekend.

And another happy settlement.

Posted by Christine Hooks, Celebrating 25 Years in Real Estate! (Pino Agency) almost 9 years ago