Perhaps an example related to hurricanes will illustrate the importance of being proactive with your insurance coverage. Every insurance company has specific underwriting guidelines relating to imminent hurricanes or tropical storms, and each has authority to issue a moratorium, described as a temporary prohibition of binding. What if you are supposed to close on a new boat in Florida in two days, but a hurricane is rapidly approaching and you failed to bind insurance before a moratorium was enacted by the insurance companies? Depending on the language in your contract, you might have to change the terms of your closing or even be forced to close the deal and ride out a hurricane on your new boat without effective coverage. This might seem like an extreme example, but similar situations happen every year.