Coastal areas offer beautiful ocean views and luxury living for homeowners. However, the risks and exposures of coastal property are significantly different than those of inland property. The biggest exposures for coastal property are flood, wind, occupancy and replacement costs. Sometimes coastal homes can be affected by all four of these exposures at the same time, which is why it’s important to fully understand their risks.
Severe weather events in coastal areas in the last few years have shown us that many coastal property owners are still not properly insured. Insurance agents can help their coastal property clients better understand their risks and exposures as well as the ins and outs of coastal property insurance so they can be well-educated and better equipped to handle future coastal property threats. Let’s take a closer look at the most important things your coastal property clients need to know about their insurance.
1. Going without the right insurance for any amount of time is a recipe for disaster.
The worst way to find out that your coastal property doesn’t have enough or the right coverage is after is has already been damaged by a flood, storm or other disaster event. Sometimes property owners will only realize the urgency for better coverage when a storm is threatening their area, but policies usually require 30 days to activate and insurance providers typically won’t write a new policy if a named storm is active.
Another common mistake property owners make is having their coverage lapse because they forgot to pay their premium. Even a small lapse in coverage can cause huge problems if something were to happen, but agents can be helpful in reminding their clients of when the next premium is due before the policy lapses.
2. Cheaper doesn’t necessarily mean better.
Due to the severity of natural disaster-related claims over the past four years, insurance companies have had to pay out billions of dollars in damages to insured homeowners. Unfortunately, this has caused increased operating costs for insurers and brought premiums up quite significantly. Any policy that is significantly cheaper than other similar policies may be too good to be true, so it’s best to read all that fine print and make sure that bargain policy isn’t leaving huge gaps in coverage.
3. Coastal property coverage needs differ from inland property coverage needs.
Coastal property often needs different coverage than what traditional homeowners’ policies can provide. A basic policy will typically cover damage or loss of personal possessions due to fire, theft, and other disasters, but a coastal home will definitely need a separate flood insurance policy and will most likely need a separate wind policy as well to ensure it is covered for any possible scenario.
Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (800) 485-0229 to speak with one of our representatives.