Being able to call the beach your backyard is a dream come true, as well as a good goal for most. Yet, living so close to the ocean comes with its risks as well. Continue to read to find 5 of our top tips for picking the perfect spot to call home when living in a potential hurricane zone.
1. How Much is Insurance Going to Cost?
If a hurricane strikes or not, you will more than likely still need to pay for hurricane insurance. Before you start house hunting, consider meeting with an insurance agent. It can feel like you are going backward, but an insurance agent can give you an estimate of what to expect to pay each year to keep both you and your property insured from damage.
2. Should I Purchase on the Beach, or Near the Beach?
where you decide to buy a plot of property can make all the difference in both premiums and risk! Essentially, it will come down to flood hazard areas defined especially by the National Flood Insurance Program’s Flood Insurance Rate Map. The highest risk areas in Florida will be marked as Special Flood Hazard Areas and have a 1 in 4 chance of flooding when you have a 30-year mortgage. Something important to remember is it doesn’t matter if you are near the water to be considered in a flood hazard area. When you are on the hunt for a new home, consider where the house falls on the map, and check its flood-zone designation.
3. What Kind of House Should I Purchase?
Believe it or not, the kind of house you buy can make a difference because some are designed specifically to withstand hurricanes. The home—funnily enough—may have a dome-like shape to it, allowing a significant reduction of wind damage, or the home may rest on stilts to escape flooding. These types of homes may have a better rating from the insurance provider as they may have lower payments. Ensure when you are house hunting that your agent knows you are interested in homes designed to battle both the wind and water. If you are more interested in a home that appears more traditional, then hire an inspector to give you a realistic view of the home’s hurricane resistance before making an offer.
4. What is My Deductible if There is Damage?
No matter where you live, hurricanes are covered by a homeowners policy. Policies differ according to your financial responsibility, especially if you have to file a hurricane-related claim. Some insurance companies will tack on a hurricane deductible for homeowners who are located in a potential danger zone. Unlike regular homeowner insurance, this additional deductible will have to be paid if a claim is filed. You may not be able to squeeze out of a hurricane deductible, though you can save some cash by shopping around. Cost can vary from insurance company to insurance company. We advise getting three estimates before deciding on a carrier.
5. Should I Invest in Flood Insurance, Too?
If you live in a coastal region, regular homeowners insurance isn’t all you might need to ensure you are safely covered. Homeowner's insurance will cover damage related to high-powered winds caused by hurricanes and tropical storms. However, it won’t cover a major problem caused by the hurricane issue: flooding.
To keep yourself and your home protected, you will need a flood policy. These policies are typically issued by the National Flood Insurance Program, helping to protect the property from heavy rains or toppled levees caused by flooding in your house. Make sure your insurance agent goes over the policy carefully to explain concepts you may or may not understand. If you aren’t fully covered by flood, you may regret the consequences later on.
For more information on living in a hurricane zone, check out our information.
