Living on the coast comes at a cost. Insurance premiums can be through the roof on beach front homes striving away potential buyers. Having a local agent who knows the market and the particulars of your home can have savings potential. For some, the idea of retiring beachside falls flat once the price tag is shown and the sticker shock alone can drive away potential buyers.
Homeownership, on the coast, directly correlates distance to the coast and one’s insurance premium. Coastal homes are required to carry wind and hail coverage and often homes are in or near high-risk flood zones requiring a flood policy as well. Homeownership is costly from the salt corrosion blown in, harder water wreaking havoc on the pipes, taxes climbing, and rates increasing year after year on insurance coverage. Generally, homes located over a bridge or on a barrier island’s premiums will be significantly higher than those found before the bridge or on the mainland.
Life in coastal areas is beautiful, there is no doubt about it, but the cost factors play a role in one’s affordability. Generally, the further the home is from the shoreline the lower the insurance premium annual total. For instance, a home that is waterfront is often required to carry a flood policy at the highest risk rating, wind and hail coverage at a higher rated premium, and homeowner’s coverage where as a home two miles inland is less likely to be in a flood zone, the wind rating will be less impactful, and the homeowner’s premium will be more affordable.
Coastal living comes at a cost and that is something that should be considered prior to making the commitment to move. As an insurance agent my duty is to best serve the client and make sure that their home would be restored to total indemnity if they were to have a catastrophic loss. Living in a hurricane and storm surge-prone area being fully covered by homeowners insurance, wind and hail coverage, and flood insurance are the only ways to completely insure a home from fire, water, and named storms. The annual premiums come at a cost, but a necessary cost for peace of mind.
