How Deductibles Work in Coastal Home Insurance

The privilege of owning a seaside home comes with unique perils and insurance considerations necessary to protect against losses due to them. A crucial aspect is the insurance deductible, which is an integral part of all insurance policies. That’s because the deductible directly impacts a homeowner’s financial responsibility as part of the claim. In this article, we tap into decades of coastal home insurance experience to explain how deductibles work. 

Given current adverse market conditions and the increasing potential for more frequent and severe weather-related risks, we are diligent in helping our insureds stay well-informed about their options, including deductibles.

The Basics of Coastal Home Insurance Deductibles

An insurance deductible is the amount you, the policyholder, agree to pay out of pocket in the event of a loss before the insurance company’s coverage begins. To help lower premium costs, you are essentially self-insuring the first-dollar losses up to a limit known as a deductible. For instance, if your coastal home suffers a loss worth $5,000 and you have a deductible of $1,000, you cover the first $1,000, after which the insurance company takes care of the remaining $4,000.

Beyond traditional coverages, deductibles in coastal home insurance policies apply to specific losses or events, notably windstorms or floods. You will likely have separate deductibles based on the nature of the event (i.e., a hurricane deductible applies only when damage is from a hurricane). Usually, this deductible is higher than the all-other-perils deductible.

There is a give-and-take relationship between deductibles and insurance premiums. Your trusted insurance adviser can help you determine what works best for you.

What’s Included in Coastal Homeowners Insurance?

Coastal home insurance provides specialized coverage options customized to the specific risks and challenges associated with waterfront living. These include standard home coverage plus flood, windstorm, and other tailored policies for coastal properties.

Insurance premiums for coastal home insurance are calculated based on various factors such as property location, property value, proximity to the water, and the age and construction quality of the home.

The unique risks and heightened potential for catastrophic weather events that come with coastal living can make insuring coastal homes challenging. We find many insurance companies that write coastal home insurance are scaling back on limits and policy terms, which is where the expertise of specialized coastal insurance agents becomes crucial.

Securing Coverage for Your Waterfront Property with Dickstein Associates Agency

With over 55 years of experience, Dickstein Associates Agency has the expertise and market access to secure coverage for coastal residents who may have minimal insurance options due to their exposures. Whether you own a home on the Jersey Shore, in South Hampton, or in Miami, we have the market leverage to provide you with property and liability insurance.

Policies offered by Dickstein Associates Agency cover losses affecting the dwelling, its contents, loss of use, loss of rental income, loss of personal possessions for those renting out their homes, and personal liability.

We continuously assess current and future risks to ensure our clients are well-informed and prepared. While predicting the future with certainty is impossible, credible sources, such as a study from the Anderson Review of UCLA, suggest the existence of substantial potential risks in the $1 trillion coastal housing market. Awareness of these developments is imperative, as they could herald a forthcoming financial crisis. We are here to guide and advise on such crucial matters.

Customized Coverage to Suit Your Needs

We recognize and value that every coastal homeowner’s needs are unique, which is why we provide custom solutions with our coverage options. Our network of A-rated insurers enables us to secure competitive coverage for everything from family homes to high-value waterfront houses and coastal secondary dwellings. Available coverage types include:

• Property insurance
• Coverage for valuable articles, jewelry, fine arts, and collections
• Flood insurance and excess flood insurance
• High liability limits
• Umbrella and excess liability insurance

Understanding insurance deductibles and ensuring appropriate coverage is paramount for coastal property owners. A well-informed approach to insurance can help property owners safeguard their investments and enjoy peace of mind. 

Dickstein Associates Agency strives to guide you in this process, ensuring your coverage fits your needs. Explore your options and protect your precious assets with adequate and reliable insurance coverage. Contact us today to speak to a coastal home insurance professional.