If you had a Santa Rosa Beach home under contract on Friday night, when Hurricane Isaias came ashore near Destin, which part of the deal changed?
According to the Governor's Oct. 10 update, landfall came at about 9:30 p.m. EDT on Oct. 9, with Isaias at Category 2 strength and 105-mph sustained winds. Since then, buyers and sellers across South Walton have been asking whether their closing is still on. If the contract is one of the standard Florida Realtors/Florida Bar residential forms, the answer was written well before the storm formed. The forms treat a hurricane as two separate problems: damage to the property and delay in closing. Each one runs on its own clock, and one of those clocks may already be ticking.
Two problems, two clocks
The standard residential contract and the AS IS contract, the versions marked "Rev. 12/24" with 2026 revisions, use the same storm mechanics. Here is how they divide the problem:
| Damage clock | Delay clock | |
|---|---|---|
| Where it lives | Paragraph M, Risk of Loss | Paragraph 5(b) and Standard G, Force Majeure |
| What triggers it | Casualty damage after the Effective Date and before Closing | A hurricane makes services essential for closing unavailable, including insurance |
| What it measures | Restoration cost as a share of the purchase price | Time after the event stops preventing performance |
| Key threshold | 1.5% of purchase price | Up to 7 days of extension; termination right after 30 days past closing |
A home with no damage at all can still sit under the delay clock. A home with real damage can still close on schedule if the damage clock allows it. The rest of this post explains how each clock works and how this week's conditions in Walton County bear on both.
The damage clock is a dollar figure
Paragraph M covers property "damaged by fire or other casualty" between the Effective Date and Closing. It sets the line at 1.5% of the purchase price. The cost of restoration, which under the form includes the cost of pruning or removing damaged trees, is measured against that line.
Under the form, here is how the numbers play out on a $1,500,000 home, where 1.5% comes to $22,500:
- Restoration estimated at $10,000. The cost is the seller's obligation and closing proceeds under the contract terms. If the work isn't finished by closing, 125% of the estimated cost to complete is escrowed at closing, which here is $12,500. If the actual cost runs higher than the escrow, the seller pays the difference up to the 1.5% cap. Any unused escrow goes back to the seller.
- Restoration estimated at $40,000. The cost exceeds 1.5%, and the buyer makes an election. One option is to take the property "as is" together with the 1.5%, or $22,500. The other is to receive a refund of the deposit, which releases both buyer and seller from further obligations.
- A fallen live oak or pine. The form says the seller's sole obligation for tree damage "by casualty or other natural occurrence" is the cost of pruning or removal. Landscape replacement is not part of it.
The form ties the threshold to price, so the damage that crosses it changes with the home. A dented soffit and a few missing shingles might push a modest condo near its line while barely registering on a Gulf-front house. The cutoff depends entirely on the estimate. And getting an estimate means getting a contractor onto the property, which leads to the conditions on the ground this week.
The delay clock names insurance on purpose
Paragraph 5(b) of the AS IS form says that if a Force Majeure event makes services essential for closing unavailable, "including the unavailability of utilities or issuance of hazard, wind, flood or homeowners' insurance," the Closing Date is extended as provided in Standard G. Standard G includes hurricanes and floods and covers disrupted insurance availability. It extends affected time periods for a reasonable time, up to seven days after the event no longer prevents performance. If the prevention continues more than 30 days past the Closing Date, either party may terminate and the deposit is returned.
Insurance shows up in that clause because insurers stop writing coverage before a storm arrives. Citizens Property Insurance Corporation suspended policy binding statewide at 11:05 a.m. ET on Oct. 7. Its rule bars agents from binding "applications for new coverage or policy changes for increased coverage, regardless of effective date," once the National Weather Service issues a tropical storm or hurricane watch or warning for any part of Florida. The bulletin lists no exception for closings or property transfers.
Then, at 5 a.m. ET on Oct. 10, Citizens lifted the suspension and said regular operations had resumed. That window lasted about 66 hours. For a buyer counting on a Citizens policy, the insurance part of the delay clock may already be counting down from the moment the barrier came down.
Other carriers have not been as clear. Velocity Risk, a specialty commercial-property underwriter, posted a moratorium effective Oct. 7 at 12 p.m. Central covering Florida counties that include Walton and Okaloosa. Its notice gave no time for lifting it. Florida Peninsula's homepage showed a "Policy Binding Suspension due to Hurricane Isaias" notice with no posted effective time, scope or lifting status. So two buyers on the same street can be on different timelines, depending on which company is writing their wind coverage.
Flood coverage follows its own rules. FEMA says a National Flood Insurance Program policy typically has a 30-day waiting period. The exception is coverage that a government-backed lender requires and that is bought as part of that requirement, along with certain flood-map changes. Whether a particular loan falls under that exception is a question for the lender and the insurance agent.
Why Walton County's power situation affects both clocks
The standard form says the seller shall, upon reasonable notice, provide utilities service and access for appraisals and inspections, "including a walk-through (or follow-up walk-through if necessary) prior to Closing." Paragraph 5(b) also lists the "unavailability of utilities" as a Force Majeure example. On Saturday, that language described a real condition across much of the county.
Here is where things stood on Oct. 10:
- CHELCO, at its 2:30 p.m. update, reported 49,314 Walton County outages, or 93% of its accounts, and about 65,000 across its system. It gave no estimated restoration time.
- FPL Northwest expects to restore 95% of affected customers who can safely accept power by end of day Monday, Oct. 12, with many restored sooner.
- The Clyde B. Wells Bridge on U.S. 331 was listed as open in Walton County's Isaias FAQ, revised at 8 a.m. Oct. 10. The county notes that FDOT closes the bridge at sustained 40-mph winds and that conditions can change with little warning. WMBB had reported all lanes shut on Friday.
- Debris collection will "begin shortly," according to the county's update reported by WJHG. No start date was given, and questions go to the Community Information Center at 850-892-8394.
The two clocks interact here. The damage clock needs a restoration estimate, and an estimate usually needs a contractor on site with working lights and systems. That puts the paperwork in a likely order: power returns, then the walk-through happens, then someone prices the repairs, and only then is it known which side of the 1.5% line the home falls on. For repair bids, the Florida Department of Business and Professional Regulation's emergency page points homeowners to license verification and to the Florida Disaster Contractors Network's directory of verified contractors. The county's FAQ also includes forms for reporting residential storm damage.
Some things are not yet known. As of Oct. 10, we found no verified reopening status for Scenic Highway 30A or U.S. 98, and no completed assessment of dune or beach damage. South Walton Fire District crews were still assessing 26 miles of beach, and lifeguard towers remained off the sand.
Questions we're hearing this weekend
Does a damaged roof automatically end the contract? Under paragraph M, no. Damage at or under 1.5% of the purchase price stays with the seller, and closing proceeds, with escrow if the repairs aren't finished. The buyer's election to walk away comes into play only when restoration costs more than 1.5%.
The Citizens suspension is over. Does the extension end today? Standard G extends affected periods for a reasonable time of up to seven days after the event stops preventing performance. When that point arrives for a particular deal depends on that buyer's carrier, lender and closing services. Utilities count too, and in much of Walton County they were still out on Saturday afternoon.
Our contract isn't on these forms. Does any of this apply? Everything above describes how the Florida Realtors/Florida Bar forms work. Other contracts and addenda can say something different. The closing attorney or title agent handling the file is the right person to read the actual document.
Can we close before power comes back? The form calls for the seller to provide utilities for inspections and the walk-through, and it lists utility unavailability as a Force Majeure example. Whether a particular closing goes forward is a decision for the parties and their advisors.
If your South Walton purchase or sale was between contract and closing when Isaias came through, Beach Escapes Coastal Living can go through your contract's timeline with you: where the 1.5% line falls for your property, which insurance dates matter for your file, and how to schedule a walk-through as power returns. Schedule a Consultation, and we'll start with your contract.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
