| NYC Business Group
Do You Need to Buy Coastal Home Insurance in New Jersey?
Purchasing a coastal home is a dream come true for most people. Imagine having a place your family can gather and spend time together! Unfortunately, since there is a high possibility of storms and hurricanes, the dream of owning a coastal home can become a nightmare in minutes. Therefore, it is crucial to purchase the right insurance for your coastal home.
Typically, it is challenging to obtain a standard homeowner’s insurance for coastal homes. For example, obtaining insurance could be more challenging if the coastal home has had previous claims or filed claims in the past. Sometimes obtaining insurance has nothing to do with the home or applicant. Most insurance companies cease writing coastal insurance policies for a couple of reasons. For instance, if they have reached their target/limit on the number of coastal houses, they want to ensure most companies stop writing the insurance policies. Insurance companies consider coastal homes risky because of their location and weather. Ergo, if recently there was a storm or hurricane, most insurance companies may take a pause in writing insurance policies for these kinds of properties to avoid taking any more risk.
What is Coastal Home Insurance?
A standard homeowners insurance covers normal incidents like theft and fire. However, a coastal home has unique insurance needs that a standard home does not require, like storms and hurricanes. Also, insurance companies do not provide coastal homes with standard insurance policies due to the potential risks of flooding and storms. 
If you own a coastal home, you should consider buying coastal home insurance to protect your home. You can protect your home from incidents/risks that standard homeowners insurance does not cover with coastal home insurance. Coastal insurance separates the incidents, i.e., storms, hurricanes, and named storms, because each has its own deductibles. Flood insurance is not included in most insurance policies (whether standard homeowners or coastal insurance), even in a named deductible, for example, storm. Therefore, you need to purchase flood insurance to protect your home. If a storm or hurricane destroys your home and you don’t have flood insurance, your insurance company can’t cover the losses/damages. Allow our Agency help you get the right coverage today!
The Difference Between Coastal Insurance and Homeowner’s Insurance
As discussed above, coastal homes are prone to hurricanes and storms due to their location. As a result, insurers do not like taking the risk of insuring them with a standard homeowner’s insurance. Instead, insurers prefer coastal insurance because it fills the gaps that aren’t filled by the homeowner’s insurance, like storms and winds. Therefore, if you have a coastal home in New Jersey, consider buying coastal insurance to protect your home from potential hazards like storms, hurricanes, and winds. The main objective is to increase coverage at an affordable cost.
What You Need to Know About Coastal Insurance
I. Buy Coastal Coverage Before the Hurricane Season
Although it might seem prudent to wait for the hurricane season to buy the insurance, you are mistaken. Firstly, insurers do not provide new insurance policies during the hurricane season or an expected storm. Secondly, most insurance policies take approximately a month/30 days to activate. If a storm hits, you will be on the receiving end because your insurer won’t cover the damages.
II. Know Your Coverage
It is crucial to know the coverage provided by your coastal home insurance. Ideally, your coastal home is different from a standard home, and you should know your deductibles, the coverage provided, and the gaps in your coverage, for example, flood. Therefore, research well and seek help from an experienced insurance agent to avoid underinsurance.
III. Purchase Flood Insurance
Although some people overlook this coverage, it is a must, and you should consider getting one. Remember, even if flood insurance is not a must, you can incur huge losses from floods ranging from foundation issues to destroyed furniture and home structure. Ensure you have flood insurance to enjoy peace of mind knowing that your home is protected.
IV. Pick the Right Deductibles
Deductibles refer to the amount of money you have to pay out of your pocket before the insurance company steps in and covers the rest. Always ensure that your deductibles are fairly low and affordable just in case you have to pay several times over. Typically, you will have multiple deductibles or different areas of your insurance policy, for example, hurricanes, wind, and named storms. Take your time to compare deductibles from different insurance companies to make the right choice.
V. Get More Information About Discounts
Most insurance companies provide discounts to attract more clients and enhance safety. Therefore, you should inquire about discounts to understand how you can get the best value for your money. For example, you can get a good discount if you have installed home safety features such as hurricane shutters and floodproofs. After choosing your insurance agent, ask about discounts and how you can save money in the long run.
Before buying a coastal home, thoroughly research insurance agents because each has different policies. Insuring your coastal home might be expensive, but it is a worthy investment. Take your time to educate yourself on the requirements of your mortgage company and shop around to get the best rates on the market. Let us give you a FREE QUOTE today!