Coastal Property Information

Coastal homes are often among the most valuable and desired properties in any real estate market. However, these dwellings are very susceptible to property damage risks, especially from severe weather. Sometimes, these homes might not be insurable under standard homeowners insurance. Rather, they may need coastal property insurance. 

Mann & Gray Insurance is the local agency residents of southern Maryland and Delaware trust. You can rely on us to help you get coastal home coverage that offers top-tier protection for your property. 

Call us at 800-437-3888 or 410-546-5575 today to learn more, or request your free coastal property insurance quote now.  

Coastal Home Property Damage Risks 

In coastal communities, property values are often high. Coastal homes are also more likely to face significant property damage risks from extreme weather—primarily high winds, hurricanes and floods. So, not only is there more value to lose, but also there is a greater risk of damage occurring. These additional risks can create a few hurdles that you’ll have to overcome when insuring the property.  

Because of these elevated risks, many insurers have specialized insurance programs for these properties. Some insurers may even limit or exclude the weather coverage for properties in coastal areas. To get the appropriate coverage, you will likely have to buy coastal property insurance or obtain coverage through an Excess & Surplus market. 

Coastal vs. Standard Homeowners Insurance 

All in all, a coastal property insurance policy is not much different from a standard policy. However, the coastal policy will include the weather coverage that a standard plan may not.  

Coastal policies will also typically use different deductible formulas for weather claims. Weather deductibles may apply when you make a claim for damage related to named storms, hurricanes or windstorms. The weather deductibles are generally based on a percentage—usually 1-5%—of the home’s value rather than a flat fee.  

For example, you might have both a 2% weather deductible and a $5,000 standard homeowners deductible on a $400,000 coastal home insurance policy. The deductible for a hurricane damage claim will be 2% of $400,000, which is $8,000. However, the deductible for a fire claim will be the $5,000 standard property deductible. The differences in deductibles helps insurers better assume cost risks posed by coastal property owners. 

Coverage Within Coastal Homeowners Insurance 

Your coastal homeowners policy will include coverage like: 

 

With the help of your Mann & Gray agent, you can select the policy and policy limits that are most appropriate for you and your property. Our goal is to make your policy match your property value as closely as possible, so you’ll never face unsustainable setbacks. 

When Do I Need Coastal Home Insurance? 

Different insurers use different rules to determine when someone needs coastal home insurance. Many require homes within three miles of the coast to be insured with coastal insurance. Talk to your Mann & Gray agent to determine if your home requires a coastal home policy. 

Flood Insurance for Coastal Homes 

Both coastal and standard homeowners plans do not cover flood damage. Flooding related to weather—storm surge, river swells, flash floods—will not have coverage unless you buy separate flood insurance. Flood insurance can provide both dwelling and possessions coverage, though coverage limits and deductibles will apply. 

You must buy flood insurance if you live in a high-risk flood zone and have a mortgage from a federally insured lender. However, regardless of requirements, residents of coastal communities should consider flood coverage essential to have alongside their homeowners policy.  

Flood insurance policies are typically administered by the National Flood Insurance Program (NFIP), a federally funded insurance system. Most communities in both Delaware and Maryland participate in the NFIP, which qualifies residents to purchase a flood policy through the program. 

Get Your Coastal Property Insurance Today 

It shouldn’t be difficult to get homeowners insurance for your coastal property. Come to Mann & Gray Insurance, and you’ll be able to get the perfect level of coverage for both your home and your budget. Contact us today to get started.