COASTAL LIVING: INSURING YOUR HOME COMES AT A PRICE

Because of the hurricane risks associated with coastal homes, finding good coverage at a reasonable price can seem difficult. There are also other issues to consider like the occupancy of the home and other loss factors. Below we will analyze a few of these challenges that you might face when insuring your beach house or coastal home.

WIND INSURANCE

Insuring homes on the coast with wind can be challenging due to several factors, including:

‍High Risk of Wind Damage: Coastal homes are more vulnerable to wind damage due to their location in areas prone to severe weather conditions like hurricanes, tornadoes, and other strong windstorms. This high-risk factor means that insurance companies need to charge higher premiums to offset potential losses, making it difficult for homeowners to afford coverage.

‍Higher Cost of Rebuilding: The cost of rebuilding a home on the coast after wind damage can be higher than in other areas due to the higher cost of labor, materials, and transportation. This can lead to insurance companies charging higher premiums to account for the increased cost of repairs or rebuilding.

‍Lack of Availability: Insurance companies may be hesitant to insure homes on the coast due to the high risk of wind damage, making it difficult for homeowners to find affordable coverage. In some cases, insurance companies may only offer limited coverage or exclude wind damage from their policies altogether.

‍Regulatory Challenges: Insurance companies may face regulatory challenges when it comes to insuring homes on the coast with wind coverage. For example, some states may require insurance companies to offer coverage for wind damage as part of their policies, which can make it more challenging for insurance companies to provide coverage.

Overall, insuring homes on the coast with wind coverage can be challenging due to the higher risk of wind damage, higher costs of rebuilding, limited availability of coverage, and regulatory challenges.

OCCUPANCY CHALLENGES WITH INSURING COASTAL HOMES

When it comes to insuring coastal homes that are secondary, seasonal, or short-term rented, there are a few key differences to consider compared to insuring primary residences.

‍Secondary Homes: Secondary homes, also known as vacation homes, are properties that are not the primary residence of the homeowner. These homes may be located on the coast and may not be occupied year-round. Insuring a secondary home can be more challenging because it is not occupied on a full-time basis, which increases the risk of damage or theft going unnoticed for extended periods. Insurance companies may require additional inspections or coverage to account for the increased risk, which can lead to higher premiums.

‍Seasonal Homes: Seasonal homes are similar to secondary homes, but they are typically only occupied during specific seasons or times of the year. For example, a seasonal home on the coast may only be occupied during the summer months. Insuring a seasonal home can also be challenging because it is not occupied year-round, which can increase the risk of damage or theft going unnoticed.

‍Short-Term Rentals: Short-term rentals, such as those listed on vacation rental websites like Airbnb, present a unique set of challenges when it comes to insurance. In many cases, traditional homeowners insurance policies may not cover short-term rentals because they are considered a commercial use of the property. This means that homeowners may need to purchase additional coverage or obtain a separate insurance policy to cover their short-term rental activities. Insurance companies may also require additional inspections or coverage to account for the increased risk associated with short-term rentals.

Overall, insuring coastal homes that are secondary, seasonal, or short-term rented can be more challenging due to the increased risk associated with these types of properties. Homeowners may need to purchase additional coverage or obtain separate insurance policies to adequately protect their properties and mitigate their risk.

WATER DAMAGE

Water damage can pose a significant risk to both seasonal and secondary occupied homes. Here are some reasons why:

‍Lack of Regular Maintenance: Seasonal or secondary occupied homes are often left unoccupied for long periods, which means that routine maintenance and checks on plumbing, heating, and other systems may be overlooked. Any leaks or water damage may go unnoticed for an extended period, leading to more severe damage.

‍Extreme Temperatures: Seasonal or secondary occupied homes may be located in areas that experience extreme weather conditions. Freezing temperatures can cause pipes to burst, leading to water damage. Hot temperatures can cause warping of wood and other materials, leading to structural damage.

‍Delayed Detection: Since seasonal or secondary occupied homes may not be occupied regularly, water damage may go undetected for long periods, leading to more significant damage. By the time the damage is detected, it may have already caused structural damage or mold growth.

‍Insurance Coverage: Water damage may not be covered by insurance if the homeowner does not take the necessary precautions, such as shutting off the water supply or draining pipes before leaving the property unoccupied. This can result in significant financial losses for the homeowner.

‍Risk of Flooding: Seasonal or secondary occupied homes may be located in areas prone to flooding. If the home is not adequately protected against flooding, it can result in severe water damage.

Overall, water damage can cause significant damage and financial losses to seasonal or secondary occupied homes if not appropriately managed. It is essential to take preventative measures and regularly check on the property to minimize the risk of water damage.

FINDING THE PACKAGE THAT IS RIGHT FOR YOU

Regardless of whether your coastal home is your primary home or just a home you visit occasionally, we know that you face different challenges than other homeowners when it comes to insuring your home. IZC Insurance Agency and our in-house coastal homeowners experts can access multiple markets and help you navigate placing your homeowners policy and include wind coverage.

Give us a call today at (404)-795-4807 or complete our free, no hassle online quote request below. We look forward to serving you!