Waterfront properties are often unique when it comes to homeowners insurance and typical standard policies may not cover everything you need. Depending on the type of waterfront property, you may need more than the minimum coverage. If you’re financing your property you’ll need to check on what your lender requires, which could mean more than the minimum coverage.
Of course, you want to protect your entire house for the full replacement cost, but this may include other options such as belongings, outbuildings, and any additional funds if you need to stay elsewhere fall you file a claim if something should happen to the house.
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Most insurance companies consider water-front properties high risk for flooding because of their close proximity to the water. It’s important that you understand any additional cost for insurance. Ask about flood insurance policies and have your agent checked with the current owner on any additional coverage that they have needed to live in the home.
Ask about flood insurance policies and have your agent checked with the current owner on any additional coverage that they have needed to live in the home.
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Waterfront homes may also be more susceptible to when storms and hurricanes and they may not be covered under your standard policy. Check with your agent about any separate coverage you might need for them. This insurance is often referred to as “windstorm irrigation” or “hurricane by down coverage”. Some parts of the country also have lenders that will require this additional insurance and it is an added expense to a waterfront property so it’s important to be aware of that before purchasing the home.
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You’ll also want to make sure that your personal property inside the home is covered as well. While it might not be a huge price increase to add on certain personal items, it will give you peace of mind for replacement should something happen.
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If you’re buying an existing home either up against the Intracoastal Waterway, the ocean, a Lagoon or Lake, the previous homeowner will have information on additional insurance if they have chosen to be covered as well. If not, speak to your agent about additional insurance that you may need. It’s always better to be covered and safe than sorry.
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