The Extra Coverage You Need for a Coastal Property

Coastal residential property  is prime real estate. It’s a great place to live, vacation and for many, it represents investment income opportunity.  However, when it comes to insuring coastal property, the best policy is having a knowledgeable and experienced agent advocate with access to multiple insurance carriers who provide extra coverages and financial stability needed to support the unique risks and hazards facing residential coastal real estate property owners.

Consider this: according to 2012 AIR Worldwide statistics, New Jersey has the fifth-highest real-estate value of coastal property vulnerable to hurricanes, a whopping $713.9 billion aggregate value. What’s worse? Neighbor New York has the highest value of coastal property vulnerable to hurricanes, over four times higher than New Jersey at nearly $3 trillion.

Standard homeowners and dwelling fire insurance policies may have insufficient limits to pay actual replacement costs for storm-related damage, and may exclude certain types of damages to your property. Dickstein Associates Agency has over 50 years of experience insuring coastal properties and understands the unique risk characteristics and coverage needs of coastal property owners. When you look for insurance to cover your coastal home or condominium, whether owner or tenant occupied, here are just a few coverage issues in the standard homeowner or dwelling policy to watch out for:

• Hurricane & Wind Deductibles: Standard homeowners and dwelling fire insurance policies often include special wind, named storm or hurricane deductibles for coastal properties. These are often expressed as a percentage of the policy limit. For example, a $1,000,000 dwelling limit with a 5 percent Wind, Named Storm or Hurricane deductible is the same as a $50,000 deductible for wind-related damage. Check your policy to be sure your out of pocket deductible is set at an amount you can afford.
• Wind damage: Fire and theft are common claims for property owners, but did you know some substandard homeowners and dwelling fire insurance policies actually exclude coverage for wind-related damages? Wind coverage will ensure you get compensated for wind-related damages to your property and not leave you uninsured when you least expect it.
• Flood insurance: Flood damage is excluded under homeowner and dwelling fire policies and yet floods are the number one natural disaster in the U.S. Proximity to tidal water, elevation and land development all combine to increase the risk of flooding NJ coastal communities. Getting flood insurance is very easy, but unless you otherwise qualify, there is a 30-day waiting period for a new Flood Insurance Policy to become effective, so don’t wait. And if the National Flood Insurance Program’s (NFIP) maximum limits are not sufficient to fulfill your needs, ask your agent about obtaining Excess Flood Insurance coverage.

For over 50 years, the Trusted Choice™ licensed insurance professionals at Dickstein Associates Agency have customized coastal property insurance programs meeting their client’s needs and lifestyle at affordable premiums. For more information, call (877) 410-1850 today.