7 Essential Policies You Need For Beach Home Insurance


7 Beach Home Insurance Policies You Didn’t Know You Needed

So you’re considering buying a place on the beach. The sand, the sun, the down to earth people—what’s 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 doesn’t stop there. Beach homes often need special insurance policies that don’t 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 buy—or already own—a beach home property:

1 – Flood Insurance

Chances 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 Insurance

One 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 Insurance

The air is definitely fresher on the beach, but it also carries a lot of moisture. Even if you don’t 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 you’re walls develop mold, it can make your house unsellable—not to mention the hazardous effects it may have on your health.

4 – Fire Insurance

bonfire Many like to host barbecues and bonfires at their beach homes—both 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 won’t be covered in basic plans.

SEE ALSO: How Your Lifestyle Affects Your Insurance Premiums

5 – Earthquake Insurance

Beach homes are generally in high risk areas. Whether it’s perched on the side of a cliff or right on the sand, either foundation isn’t 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 Insurance

Although 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 Insurance

Why pay for an extensive home insurance plan when you aren’t 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 Homes

Beach 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

Date of original publication:
Updated on: November 10, 2015

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