Owning waterfront property is a dream come true for many homeowners. However, that dream can be shattered if a strong storm surge or hurricane winds damage their home. Coastal insurance provides financial coverage that addresses gaps in general homeowners’ policies.
Differences Between Policies
A general coverage policy takes effect with situations involving property damage caused by lightning strikes, fires, hail and sometimes windstorms. For coastal properties, the risk of wind damage increases, as does the need for higher coverage limits. Natural disasters such as floods and earthquakes aren’t usually covered by homeowners’ insurance either, but some coastal coverage policies include flooding due to the proximity to water.
Coastal coverage also includes special allowances on covered items, because many waterfront properties are used as secondary residences or vacation homes. More specific endorsements on your policy might include valuable articles such as furs, silverware or jewelry on either a scheduled limit or blanket limit. You can also secure coverage for “all causes of loss” based on the cash value of items such as motors, boats or other recreational equipment that incurs damage.
Depending on your carrier, you may be able to bundle your coastal insurance policy with traditional homeowners’ coverage. Bundling often saves money but gives you the most comprehensive coverage for your property.