Coastal Insurance Realities

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Recent weather trends confirm that extreme coastal storms have become the new normal. From Katrina to Sandy to Florence, beach communities have been severely damaged (and sometimes even destroyed) by a series of devastating hurricanes and named storms.

It is no wonder then that beach house insurance cost continues to rise. Underwriters have become wary, and some major insurers are phasing out coastal coverage. Taking this into account, it is more important than ever that homeowners understand the realities of coastal insurance.

The Nitty Gritty: Don’t Scrimp on Coverage

If your house is located within three miles of the ocean, standard property insurance will not pay for hurricane or wind damage. If your home is secured by a bank loan, chances are your lender will require you to carry a separate windstorm plan. Even if you own the property free and clear, obtaining adequate hurricane protection is a no-brainer

With property insurance and a separate windstorm protection policy in hand, you’re all set, right? Sadly, no. Neither property nor windstorm insurance covers the cost of flood damage, and flood policies do not come cheap.

Don’t let the premium deter you. Hurricanes wreak as much havoc with flooding as they do with wind damage, and this is money well-spent.

The Bottom Line

Estimating beach house insurance cost is difficult. Premiums vary depending on location, property value and deductible. Consult with an experienced insurance agent who can find the most economical solution while not sacrificing the coverage that is necessary.