Home Insurance For Coastal Areas – The Massachusetts Fair Plan was originally designed in the 1960s as a safety-net insurance option for “high-risk homes.” In recent decades, it was the only insurance option for many coastal homeowners. Today, the Fair Plan still insures a fair portion of coastal homes, but more and more coastal homeowners are switching to private insurers. Continue reading to find out if you are getting the best premium for your property.
Sandwich, Massachusetts, USA- November 1, 2021- Biodegradable erosion control fiber rolls called coir logs have been installed at the base of man-made sand dunes to try to protect coastal homes from being destroyed by winter storms and high tides. Unfortunately, success in these applications was limited and the application failed after the initial nor’easter.
Home Insurance For Coastal Areas
Coastal homeowners on the North Shore through Cape Cod are exploring their home insurance options to maximize their savings.
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As a coastal homeowner, you know the dangers better than anyone. But whether you’re a longtime coastal homeowner or a brand new one — you should know, it’s not going away anytime soon. Of course, living by water has never been a bigger responsibility. Massachusetts charts choppy waters ahead for coastal homes…
“In coastal areas, rising sea levels can erode shorelines, threaten coastal drinking water supplies with salt-water intrusion, and displace residents. Sea-level rise also contributes to higher storm surges and flooding during coastal storm events. “Tidal flooding” can damage beaches, roadways, and buildings. Flooding can expose people to physical hazards, contaminated floodwater and drinking water, and displace residents, leading to permanent relocation.
“More than half (53%) of Massachusetts residents live in coastal communities.” In the coming years, “scientists estimate that nearly half a million people living along the Massachusetts coast could be at risk.” 1 in 5 Massachusetts residents live in FEMA-designated floodplains. About a quarter of Massachusetts towns are designated as MEMA coastal storm surge zones.
For new and long-time coastal homeowners, the MA Fair Plan is still a great place to start, but is it the best plan for you? Today, there are other options besides the MA Fair plan that can save you money. Navigating coastal homeowners insurance can be confusing, and Saltmarsh Insurance is here to help you give your home a secure future.
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Posted in Flood Insurance , Home Insurance Tagged With: flood insurance , home insurance , homeowners insurance , home insurance , prepare for a hurricane , saltmarsh insurance Do you live by the ocean? Your home needs special insurance. However, it also includes homes located a few miles inland, as they face certain hazards such as high winds and flooding.
Owning your own beach paradise is a dream come true for many homeowners. But with that dream comes the reality of storms, floods, hurricanes and other coastal hazards. To help protect your home (and your possessions), you’ll want to make sure you have adequate homeowners insurance coverage that’s specific to coastal areas.
It’s true – insurance companies across the country are suffering as a result of significant losses due to the frequency and intensity of coastal storms. Insuring shore-side properties is a complex process. To be adequately protected against all possible risks, several insurance endorsements may be necessary—so where do you start?
Fortunately for you, we specialize in finding coastal homeowners the unique coverage they need for their coastal homes. We have the specialized expertise and knowledge needed to accurately assess your risk exposures and help you create the perfect coverage plan—one that truly fits your unique asset needs.
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And, if the worst happens, we’ll be here to help you with your coastal homeowners insurance claim and make sure your interests are properly protected.
Do you live by the sea? Your home needs special insurance. However, it also includes homes located a few miles inland, as they face certain hazards such as high winds and flooding. Of course, if a storm makes landfall, storm surge can come in many forms.
It is not just houses that need such insurance. Other homes such as condos and vacation homes also require this special protection.
Coastal homes have more exposures, so they require more additional coverage than what comes with a standard home insurance policy. In particular, insurance policies for coastal homes include special wind, named storm and hurricane deductibles.
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Our agents are committed to getting clients the right customized coastal home policies. That’s why we work with you one-on-one to determine the best ways to get the coverage your home deserves at prices you can afford. If you own a home near a beach or coastline, coastal home insurance may be right for you. Homes near the coast are generally at greater risk of damage from hurricanes, and some insurers are reluctant to cover coastal properties. Here’s a more in-depth look at this unique type of insurance that can provide the coverage your coastal home needs.
This is a basic policy, unlike flood and earthquake coverage, which are add-on policies that supplement your standard homeowners insurance. Coastal properties can be difficult to insure because they are generally more vulnerable to damage from natural causes such as wind, flooding, storm surge and – for beachfront homes – erosion.
Although coastal insurance is for beachfront houses, it works like standard homeowners insurance. The only difference? This is for hard-to-insure homes on the coast. But like other policies, coastal insurance does not cover floods, earthquakes or wind storms in some cases. So you may still need additional policies to ensure you are adequately protected.
Coastal insurance policies are similar to standard home insurance policies. They typically include coverage for residence, personal property, other structures, loss of use, personal liability, and medical payments.
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But it’s always important to understand the details of your coastal insurance policy – especially what it covers.
Coastal home insurance does not cover flooding. Depending on your policy, this may or may not include windstorm coverage. Because of that, you may need to add additional policies to ensure your home is adequately covered.
You can buy flood insurance backed by the National Flood Insurance Program (NFIP), a government-supported agency. Or you can purchase flood insurance from a private company. With a beachfront property, your options may be limited depending on which company can offer a policy.
Windstorm coverage options for coastal properties vary by state. You can buy private windstorm insurance, or you can buy it through a state agency. But, as with flood insurance from NFIP, you can work with your existing provider to add a policy.
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In Texas, for example, homeowner’s insurance does not cover wind and hail damage to homes on the Texas coast or in Harris County along Galveston Bay. To obtain coverage, homeowners must obtain a Texas Windstorm Insurance Association policy.
Coastal home insurance rates vary based on home size, location and other information about the property. But generally, it is more expensive than standard home insurance.
Standard home insurance includes a deductible, which is usually a fixed amount that ranges from $200 to $2,000. But coastal home insurance has multiple deductibles in varying amounts. These amounts are equal to a percentage of your residential coverage limit, usually 1% to 10%.
For example, your policy may state that there is a 5% exclusion for damage from hurricanes or named storms. If your home is covered for $500,000, you are responsible for paying $25,000 in hurricane damage.
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When you file an insurance claim, the deductible is the amount you have to pay out-of-pocket before the insurance starts paying for the covered event.
Whether you need coastal insurance depends on the location of your home and whether you can get coverage from a standard provider. If you live on the coast and can’t find traditional coverage, you may need coastal insurance.
Coastal insurance is available through some private insurance providers, but most companies do not insure homes near the ocean because of the greater risk of damage.
If you can’t find insurance through a private provider, you can get insurance through your state’s FAIR plan.
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State governments administer the fair plans for their state, while private insurance companies fund each plan. The program aims to provide home insurance coverage to homes that other companies cannot insure – homes near the beach often fall into that category. You can check for details about the FAIR plan in your state.
Coastal home insurance has unique perks, like knowing your home is adequately protected. But there are also potential downsides. Here’s what you should consider.
Understanding the ins and outs of coastal home insurance can be challenging. Here are answers to some frequently asked questions.
Taylor Milam-Samuel is an author and trusted educator on how people earn, save and spend their money. When she’s not researching financial terms and conditions, she can be found in the classroom teaching.
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Chris is an experienced writer/editor with past experience in many industries including Insurance, SAS, Finance, Medicare, Logistics, Marketing/Advertising and many more. Do you need Coastal Homeowners Insurance? We do