Florida Coastal Home Insurance Guide. How much and what’s covered?
Do you need a coastal insurance policy in Florida? Coastal insurance policies are designed to protect homes that are located on or near the beach. This is because homes that are located on the water have additional risks that inland homes don’t typically experience. Let’s take a look at what coastal home insurance covers and how much it costs.
What Risks Do Coastal Homes Experience?
Coastal homes experience a myriad of risks that inland homeowners don’t have to worry about because they’re not located near large bodies of water. When it comes to beach homes, most of the risk revolves around the house’s proximity to the ocean and the increased risk of experiencing floods and severe weather events, like hurricanes and tropical storms. Additionally, if the coastal home is located on a cliff, landslides could become a problem. Beach homes are also susceptible to property erosion and increasing sea levels.
The Cost of Coastal Home Insurance in Florida
Many homeowners in Florida have experienced dramatic increases in home insurance rates over the last few years. This is because many insurers have left the state due to the increased risk of severe weather and the higher costs to repair and replace homes. The good news is that Fearnow can help you find affordable insurance policies for your beach home, and if you’re wondering how much you’d pay for a coastal insurance policy, MarketWatch reports that Florida homeowners can expect to pay about $4,000 a year or $333 per month for coastal home insurance.
Coastal Home Insurance in Florida
Coastal home insurance is designed to financially protect homeowners from the unique risks of owning a home on the beach or within a few miles of the ocean or gulf. Basic coastal insurance typically includes liability, flood, contents and outbuilding coverage.
Liability Insurance
Liability insurance helps financially protect you if someone gets injured on your property, or their property is damaged. For example, if your beach house is on stilts or pillars, someone could fall down the stairs and need medical attention. Your liability insurance would help pay for any resulting lawsuits for the payment of medical bills. Of course, you may also want to make sure that you have medical payments coverage, which is a type of liability insurance that helps pay for medical expenses if non-residents of your home get injuries while visiting.
Flood Insurance
Flood insurance helps financially protect your home against rising waters from streams, creeks, lakes and oceans. Normal property insurance doesn’t typically cover flood damage, but coastal insurance is an insurance product that’s specifically designed for homes that reside near large bodies of water.
Contents Coverage
The contents portion of your coastal insurance policy helps pay to replace the items inside your home. This typically includes your personal belongings and furniture. You can think of it as anything that isn’t permanently attached to your home’s structure.
Outbuilding Coverage
If your property has outbuildings, like sheds and garages, this coverage helps pay for the repair or replacement of these structures after you experience a covered event.
Other Coastal Insurance Coverages You May Want to Consider
In addition to the standard coverages, you may want to consider adding additional flood insurance, all hazard insurance and dwelling replacement coverage.
- Extra Flood Insurance Coverage – If you already have a flood insurance policy through the state, you may want to check the limitations. If the limitations are less than the value of your beach home, you may want to consider getting additional flood insurance coverage.
- Home Replacement Coverage – Home replacement coverage is a type of dwelling coverage that pays to rebuild your home if it’s destroyed by a covered event. Other types of coverage typically go by the market value of your home.
- All Hazard Insurance – This type of coverage helps pay for damage caused by various types of hazards and is more comprehensive than a standard hazard insurance policy. This is because it covers all hazards unless they’re specifically excluded or mentioned in the policy.
Coastal Home Insurance Deductibles
Like most home insurance policies, coastal home insurance has a deductible. It’s important to ask your agent about the amount of the deductible as it can range from 1 to 5 percent of the home’s insured value. This means that if your home is insured for $500,000 and has a 5 percent deductible, you’d be responsible for $25,000 of the cost of the repairs or the replacement of the home. By contrast, a deductible of 1 percent would be $5,000.
Coastal Home Insurance with Fearnow in Florida
If you need beach home or coastal home insurance we can help you find the right policy for your primary Florida home or your vacation house. We offer homeowners insurance, flood insurance and even vehicle insurance at affordable rates.
To learn more about our coastal insurance and to get a quote, give us a call at 813-689-8878.