Coastal Risk Insurance
If your life is centered on the coast, you need to make sure you have the coastal insurance coverage you need to protect yourself, your home, and your business.
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Please note: coverage cannot be bound or altered online. A service representative will need to contact you to finalize your request.
Insurance for Coastal Hazards
Life on the coast is the dream for lots of people. Living near the beach can improve your mental health and give you access to recreational activities you can’t do anywhere else. However, idyllic sunny days can quickly change into turbulent storms that wreak havoc on a coastal community. Life on the coast can be fantastic, but you should prepare for when skies turn gray.
What kind of insurance do I need on the coast?
If your life is centered on the coast, you need to make sure you have the coverage you need to protect yourself, your home, and your business. Policies that typically protect against inclement weather — like hurricanes, high-speed winds, and even flooding — will have exclusions that explicitly remove these coverages from standard policies such as homeowners and commercial property insurance.
So, if you live on the coast, it’s crucial you check your current insurance policies to see if you are protected against:
Do I need special coastal insurance for my home?
As mentioned in the section above, if you live within three miles of a coast, damages caused by wind, named storms, and hurricanes are most likely excluded from your standard homeowner’s insurance policy.
Because you live on the coast, you’re almost guaranteed to face bad weather, so going without the proper protection increases your risk for severe financial loss.
One available option is coastal homeowners insurance. This type of policy is designed to protect against the risks that coastal homes regularly face. Even with this type of policy, you will still need a separate flood insurance policy.
Coastlines always have a severe risk for flooding, and going without a flood insurance policy isn’t an option. In fact, depending on the value of your home, you may need an additional flood policy to fully protect your home and its contents.
Do I need coastal insurance for my business?
Even though wind and flooding insurance isn’t legally required for your coastline business, it is strongly recommended. Like a standard homeowner’s policy, typical commercial property insurance usually excludes wind and storm damages for businesses along a coast. However, you can get the weather coverage you need by adding an endorsement to the base policy.
Flood insurance is just as essential for your business. What happens if you lose inventory to flooding or vital business equipment is seriously damaged? If you are financially unable to replace, repair, or restore your business to regular operation on your own after a flood, then you need flood insurance to help cover these costs.
Read more about preparing your business for a natural disaster »
Does homeowners insurance cover coastal erosion?
Because coastal erosion is a natural process that is impossible to prevent, it isn’t easy to find insurance that will cover it. It’s usually excluded from homeowners insurance because it’s classified as “earth movement.”
You may find some coverage with a flood policy, but it only applies when coastal erosion occurs due to extreme or unexpected flooding. Another option is to consider purchasing additional riders and add-on policies that offer limited protection.
One of the best ways to minimize damages and costs associated with coastal erosion is building and maintaining a retaining wall.
As professionals in the field of coastal insurance at Harris-Fowler Insurance, we make it our business to know you and your concerns. We spend time learning and listening to better serve you, our clients.
We’d love to chat with you if you are considering insurance for your coastal home or business. We can answer your questions and help you find a solution that fits your needs and budget. Contact us today!
Frequently Asked Questions
How much does earthquake insurance cost?
The cost of earthquake insurance can vary depending on several factors, including the location of the insured property, the risk of earthquakes in that area, the value of the property, the coverage limits, and deductibles chosen.
In high-risk earthquake areas, such as regions along major fault lines, the cost of earthquake insurance tends to be higher. Similarly, if the property is located in an area with a history of frequent or severe earthquakes, the premiums will likely be higher compared to areas with a lower risk.
The cost of earthquake insurance is also influenced by the coverage limits and deductibles. Higher coverage limits and lower deductibles generally result in higher premiums. Additionally, factors such as the type of construction of the property, its age, and proximity to fire stations or other emergency services may also affect the cost.
How often should jewelry be appraised for insurance?
There's a lot of contradicting information regarding jewelry appraisals for insurance reasons. Our advice is this: have your valuable jewelry appraised, even if your insurer doesn't require it. Doing so gives you a better idea of what your coverage should be. For less expensive pieces, an invoice or receipt is sufficient. After the initial appraisal, some insurers suggest a reappraisal every two years. Reappraisals ensure your insurance coverage accurately reflects the value of your jewelry.
How much does jewelry insurance cost?
Premiums for jewelry insurance vary based on a few different factors, including:
- Where you live
- Theft rates in your area
- Value of the insured piece of jewelry
- Whether or not you have a deductible
If you are looking for an estimate, typically your premium will be 1-3% of the value of your jewelry.
Do I need long-term care insurance?
In 2019, a study done by the U.S. Department of Health & Human Services found that nearly 70% of Americans, ages 65 and up, will need one form of long-term care or another during their lives. Keep in mind that long-term care isn't limited to chronic illnesses. You may need care after taking a bad fall or after a stroke. You can't predict the future, but you can protect yourself against unexpected costs arising from injury and illness.
How do I insure my jewelry?
There are three ways for you to protect your jewelry and other valuables.
- A personal articles floater (PAF) or a valuable items plus endorsement for your homeowner's policy. This add-on is good for items that are extremely valuable, rare, or irreplaceable, and it allows you to be reimbursed for the value of the item, based on a bill of sale or appraisal that's been approved by your insurer.
- Valuable Items Plus Endorsement. This homeowner's extension is less comprehensive than a PAF due to the limits set in place by the insurer. However, your valuables remain protected against additional perils.
- The last way to insure your jewelry is by purchasing a custom policy designed for it by an insurance group, like Harris-Fowler Insurance
How much coverage do I need in the event I am named in a lawsuit for bodily injury or property damage caused to others?
Liability limits generally start at $100,000. It is a good idea to discuss your needs with your insurance advisor to determine what level of coverage is right for your situation. It may be beneficial to purchase an umbrella policy which increases your limits of liability by $1 million or more.
Is long-term care insurance worth it?
Long-term care (LTC) insurance is one of the more expensive personal health policies that exist in the current market.
However, there are a lot of benefits that accompany an LTC policy. Some of these benefits include:
- More flexibility and options than are offered in many public assistance programs.
- Can be tax deductible if the policy is tax-qualified and you itemize tax deductions. You can find more information about the tax deductibility of long-term care insurance premiums here.
- Protecting your retirement savings from being drained by the costly expenses associated with long-term care.
- It can help fill the gap in Medicare, which doesn't cover in-home care for seniors.
Are there alternatives to long-term care insurance?
There are other options you can pursue to cover the cost of any long-term care you may need. Some examples include:
- Boost your retirement savings
- Invest in a deferred lifetime annuity
- Add a long-term care rider to your current life insurance policy
- Downsize your home if there's a lot of space you aren't using
- Rent out your home to create some extra income
- Consider co-housing with others who need long-term care and share the cost of an in-home aid
What insurance products are available for private clients?
- High-value auto
- High-Value Homeowners
- Valuable items
- Identity Theft Essential support, including resolution services
- Watercraft and Yachts
- Wedding and Private Event Insurance
- Excess Liability and Personal Umbrella
What does Medigap cover?
Medigap policies can be used to pay co-payments, coinsurance, and deductibles, and in some cases, Medigap policies may cover services that aren't covered at all by Original Medicare, such as medical care if you travel outside of the United States.
How much long-term care coverage do I need?
Before answering this question, let's consider a few things. Will you have a family member to help care for you when you're older?
If so, you may not need as much coverage as someone who doesn't have a family member to care for them.
Are you male or female? Women tend to live longer, which is reflected in the pricing for their long-term care premiums.
They often need more long-term care because of their longer average lifespan.
Is there a history of chronic illness or ailments in your family?
For example, people with a family history of early-onset Alzheimer's will likely need more coverage.
Are you currently healthy? If you are in shape and live a healthy lifestyle, you may opt for a shorter-term plan of only two years.
When should I buy long-term care insurance?
The earlier you secure an LTC policy, the better. If you buy one when you are younger between 45 and 55 you can secure a much more affordable premium. Between the ages of 45 and 55, you are healthier, and the likelihood of you needing the coverage of LTC insurance is much lower.
Additionally, it becomes more challenging to qualify for LTC coverage as you get older because your risk increases.
What makes private client insurance different?
Higher limits, protection for unique situations, and a hassle-free claims experience.
With a private client offering, you can expect:
- A mature, dedicated service team with an extensive background in serving varied needs and expectations.
- Identification of potential areas of loss and a tailored solution to maximize coverage while minimizing cost.
- Complete confidentiality every step of the way.
- Access to the nation's leading insurance providers, including products designed for private clients.
- An insurance advisor at your side to navigate claims.
How much coverage should I carry?
The answer usually depends on your net worth.
Calculating the value of your home, stocks, mutual funds, and retirement accounts is the first step to determining the amount of coverage you should purchase under an umbrella insurance policy.
Any claim amount exceeding your standard liability policy is your responsibility to cover.
What does renter's insurance cover?
Home renters insurance is tailored to protect against three major types of exposures.
- Personal Property If your personal property is damaged or lost because of a covered peril like fire or theft you are protected by personal property coverage. However, not all your personal property may be covered. Some expensive belongings such as jewelry or a valuable coin collection are not protected in a standard renters insurance policy and require additional coverage.
- Personal Liability With this type of coverage, you are financially protected if a guest is injured while visiting or if you accidentally damage someone else's property.
- Additional Living Expenses If you are displaced because your residence is damaged or becomes uninhabitable, additional living expenses coverage can create a financial buffer for you by paying for costs like hotel bills.
In addition, there are two types of renter's insurance. Neither is better than the other, and your choice depends on your risks and needs.
- Actual Cash Value Coverage This type of policy reimburses you for the true value of your items when they are lost, which means depreciation pays a part in the final amount.
- Replacement Cost Coverage This policy is more comprehensive and will cover the actual cost of replacing a lost or damaged item.
What is not covered by renters insurance?
Renters insurance is an incredibly helpful essential, but there are some exclusions and limits to keep in mind.
- Your renters insurance does not cover personal property loss over your coverage limit. This means that once you reach the limit, you can't be compensated for any more money past the limit amount.
- Your personal liability coverage will also have a limit. Just like mentioned above, if your claim exceeds the limit, you won't be reimbursed past it.
- Your renters insurance does not cover any damage you may cause to the structure of your rental home.
What happens if a claim costs more than the limit on your home or car insurance policy?
Unfortunately, any amount owed that is over your policy limit is your responsibility and can be financially devastating. The good news is you can easily protect yourself from large claims by adding low-cost umbrella insurance to your policy.
How much renters insurance do I need?
This is another one of those questions where the answer varies depending on the person. Ultimately, it all comes down to what you want covered. To help you decide, it may be helpful for you to create an inventory of the items in your home and their value. You may be okay if some of your belongings go without coverage. You've worked hard to make the property you rent into a home. We can help protect it. We'll assess what your risks are and help you tailor the renters policy you need. We'd love to chat with you. Contact our agents today!
Is renters insurance required?
As a tenant, the only time you are required to purchase renters insurance is when your landlord requires it, which they are legally allowed to do. Your landlord's insurance has specific exclusions and limits, just like yours. For example, their policy doesn't cover your personal belongings at all. It also won't cover any damage you do to the property. Your landlord wants to stay protected as much as you do!
How Does Umbrella Insurance Work?
Umbrella insurance goes into effect when there is a covered liability claim under your car or homeowners insurance policy that exceeds the coverage limits you have purchased on those policies.