7 Beach Home Insurance Policies You Didnt Know You NeededSo youre considering buying a place on the beach. The sand, the sun, the down to earth peoplewhats not to like about the beach? Possibly the cost of living. The price tag alone on beach front properties can cost an arm and a leg. And it doesnt stop there. Beach homes often need special insurance policies that dont come standard with any old home insurance plan. Aside from the luxury facilities such as your personal gym and an outdoor lounge area, you need to invest in the following extra policies if you're looking to buyor already owna beach home property:
1 Flood InsuranceChances of a flood increase when you live near large bodies of water, like the ocean. Flood insurance covers the foundation of the home as well as the equipment used for structural support. Some of those items include furnaces, water heaters, and circuit breakers. Flood insurance typically does not cover belongings and basements. So in the event of a flood in your basement, repainting the walls wouldn't be covered under your standard flood insurance.
2 Boat House InsuranceOne of the perks to living on the water is having a place to park your boat. Boats have their own insurance. There are two types you can buy: Actual Cash Value and Agreed Amount Value. Actual Cash Value polices are generally cheaper because it pays for damages with the depreciation calculated. Agreed Amount Value policies pay for the value of the hull as well as all the documented equipment and hardware.
3 Mold InsuranceThe air is definitely fresher on the beach, but it also carries a lot of moisture. Even if you dont live right on the water, you have to have mold insurance if you live in a beach town. The extra water in the air and windows in your home increases your chances of getting mold. If youre walls develop mold, it can make your house unsellablenot to mention the hazardous effects it may have on your health.
4 Fire InsuranceMany like to host barbecues and bonfires at their beach homesboth pair well with crisp, ocean air. But having large open flames can be hazardous. Standard home insurance plans actually do a pretty good job of taking care of you in the event of a fire. Typical policies will pay for temporary housing expenses and up to a certain amount for belongings. Buying additional fire insurance is advantageous when you own a lot of costly valuables. Original Van Gogh paintings, diamond necklaces, and gold plated watches can catch fire and burn completely, but probably wont be covered in basic plans.
5 Earthquake InsuranceBeach homes are generally in high risk areas. Whether its perched on the side of a cliff or right on the sand, either foundation isnt the most reliable. Even if your house is built solidly, the area surrounding your house is susceptible to movement. Earthquake insurance insures personal property and may cover the costs of rebuilding the land and foundation that supports your house. You are also covered for hotel expenses while your house is being fixed.
6 Earth Movement InsuranceAlthough it may not be an earthquake, the ground is always moving. And because of this, in-ground pools are at risk for randomly cracking. Depending on your provider, earthquake insurance may not cover common instances of earth movements such as landslides or the constant contracting of the earth. Say an earthquake happens and loosens a boulder from a nearby cliff. That boulder rolls down the hill and smashes your home. This type of incidence is usually not covered under earthquake insurance, but is insured by earth movement insurance. Earthquake and earth movement insurance are a little tricky. Know that there is a difference between earth movements and an earthquake, and ask your home insurance provider for the specifics.
7 Seasonal & Vacation Home InsuranceWhy pay for an extensive home insurance plan when you arent there all the time? Vacation Home Insurance is ideal for summer houses. It generally comes with property coverage, named peril coverage, loss settlements, cash for damaged property, and liability coverage. Insuring vacation homes is especially important because no one is there to take care of it in the event of an emergency. Floods and fires can happen and go unnoticed and get out of control when no one is there to intervene.
These Extra Policies Are Absolutely Necessary For Beach HomesBeach homes are susceptible to a unique set of problems ranging from falling off a sandy cliff to mold developing in the walls. Understand that all of the policies listed do not come standard with basic home insurance plans. Whenever you move into a new place, be sure to take stock of all your assets and predict what could happen. Figuring out what risks you have will help you determine which policies you need to add onto your plan. Spending the extra dollar on these policies could potentially save you thousands.
SEE ALSO: 7 Celebrity Beach Homes You Wish You Had