Coastal homes typically need more comprehensive coverage than what just a standard homeowners insurance policy offers. That’s where coastal home insurance comes in. These are specialized policies provided by select insurance companies that include robust coverage to protect beach houses against tropical storms and hurricanes that many standard home insurance policies will limit protection from.
However, due to the high risk of coastal homeowners filing a claim, many companies limit the number of beach home insurance policies they’ll write — if they even offer them at all. If that’s the case, you may need to rely on your state’s Fair Access to Insurance Requirements (FAIR) Plan to find coverage for your beach house. Just keep in mind these policies are typically more expensive and offer less coverage than private coastal home insurance policies.
What is coastal homeowners insurance?
Coastal homeowners insurance (also called beach house insurance) is a comprehensive home insurance policy specifically designed for homes near the water that are at heightened risk of windstorm and water damage.
This type of policy usually comes with replacement cost coverages for both your home and belongings — meaning depreciation isn’t factored into the cost of repairing your home or replacing your stuff. Beach house insurance also typically covers your home against all hazards except for those explicitly listed as exclusions in your policy. This usually includes perils like flooding, and in some cases, wind and hail. (More on that below.)
Because beach houses have a higher risk of damage due to severe weather, most coastal home insurance policies come with special deductibles that are triggered when your home is hit by a hurricane, named storm, or windstorm. (We’ll chat more about coastal home insurance deductibles in a minute.)
Average cost of home insurance in coastal cities around the U.S.
Here’s a look at the average cost of home insurance in popular U.S. coastal cities, according to our analysis of home insurance rates provided by Quadrant Information Services.
Coastal city | Average annual cost |
|---|---|
$2,742 | |
$2,288 | |
$1,884 | |
$5,003 | |
$2,502 | |
$1,769 | |
$858 | |
$1,333 | |
$1,533 | |
$2,210 | |
$1,195 | |
$2,606 | |
$2,445 |
What is the difference between standard home insurance and coastal home insurance?
Coastal home insurance is harder to find and more expensive than standard home insurance because most companies don’t want to take on the increased risk that comes with insuring homes near the coast.
Here’s a quick look at the differences between standard home insurance and coastal home insurance:
Standard policy | Coastal policy | |
|---|---|---|
Dwelling | Replacement cost | Extended or guaranteed replacement cost |
Other structures | Actual cash value | Extended or guaranteed replacement cost |
Personal property | Actual cash value | Replacement cost coverage |
Where to find a policy | Most home insurance companies | Specialized insurance carriers or FAIR Plans |
How much it costs | National average of $1,754 per year | Varies, but typically more expensive |
Deductibles | One deductible — between $500 and $2,000 | Multiple deductibles — 1% to 10% of your dwelling coverage limit |
What other coverages do I need for a coastal home?
Homeowners insurance excludes coverage for certain perils that coastal homes are at risk for, like flood damage, and in certain states, wind and hail damage. This means you may need to purchase two other insurance policies on top of your standard home insurance to ensure you're fully protected.
3 types of deductibles for coastal homes
Home insurance deductibles are the out-of-pocket expenses you’ll need to pay before your insurance kicks in. Homes in coastal areas may have separate deductibles for different types of storms, according to the Insurance Information Institute. [1]
These special deductibles are typically set at 1% to 10% of your dwelling coverage limit, though it varies by state around how much they can charge and when the deductibles are triggered. Check with your insurer about which deductibles you have and how they work. [2]
How to get coastal home insurance
If you need coastal dwelling protection coverage, there are a few steps you’ll need to take, including:
Reach out to an agent. Insurance is complex and it is important to work with an expert who can help you make sure you have the right coverage for your needs.
Review coverage options. Your insurance agent can explain what coverages are available to you so you are able to make an informed choice.
Choose your deductibles. In addition to choosing a policy, you’ll also need to decide how much you can afford to spend out-of-pocket in an emergency. The higher your deductible, the lower your rates will be.
Buy flood insurance. Flood insurance is a necessity if you live on waterfront property, so make sure you purchase flood coverage along with your coastal dwelling protection coverage.
Consider any other insurance coverage you need. Consider any other specialized coverage you may need, like scheduled property coverage for jewelry or musical instruments, in addition to beachfront property coverage.
Buy coverage before you need it. Flood insurance doesn’t cover anything until your policy has been in force for 30 days, so make sure you buy coverage at least a month before hurricane season.
What if I can’t find coastal homeowners insurance?
If you can’t find a company willing to insure your coastal home, you may be able to get coverage through your state’s FAIR Plan or Beach and Windstorm Plan. [3] These are insurance programs designed for high-risk homeowners who’ve struggled to find a policy on the private insurance market.
When it comes to home insurance, homeowners are required to have an insurance policy in place before a bank will issue a mortgage. But homeowners who need an oceanfront home policy may be in a bit of a conundrum: private insurers will often deny coverage for high risk homes, so how can you get insurance if nobody will sell it to you? This is where FAIR plans come into play. There are a few differences between FAIR plans and private insurance, including:
FAIR plans | Private insurance |
|---|---|
Designed for homes that don’t qualify for standard insurance due to their location, condition, or claims history | Designed for most homeowners, except those who are considered especially high risk |
More expensive than standard home insurance with limited coverage | Price varies widely based on your location, claims history, and other factors |
Available in 33 states and Washington, D.C. | Some form of private insurance is available in every state |
Must prove that you were denied coverage on the standard market to be eligible for a FAIR plan | Must meet certain requirements for eligibility that vary from one company to the next |
While FAIR plans are run on the state level, they’re funded by private insurance companies licensed to do business in the state. These policies are typically more expensive than standard homeowners insurance policies and offer lower coverage limits.
How comprehensive the coverage options are will depend on your state. To qualify for coverage, you may need to prove you were denied coverage from several private insurance companies a certain number of times, typically three.
What coastal states offer FAIR Plans or Beach and Windstorm Plans?
Twenty-seven coastal states around the U.S. offer some sort of FAIR Plan, while only seven states situated along the Gulf and East Coasts have Beach and Windstorm Plans.
FAIR Plan | Beach and Windstorm Plan | |
|---|---|---|
✓ | ✓ | |
✓ | ||
✓ | ||
✓ | ||
✓ | ✓ | |
✓ | ||
✓ | ||
✓ | ||
✓ | ||
✓ | ||
✓ | ||
✓ | ||
✓ | ||
✓ | ||
✓ | ✓ | |
✓ | ||
✓ | ✓ | |
✓ | ✓ | |
✓ | ||
✓ | ||
✓ | ||
✓ | ||
✓ | ✓ | |
✓ | ✓ | |
✓ | ||
✓ | ||
✓ |
Best coastal home insurance providers
While there are many home insurance companies that offer coastal property coverage, some have additional insurance options more catered toward high-risk homes. Here are some of the best coastal home insurance companies for a variety of different considerations.
Company | Why they’re a top coastal home insurer |
|---|---|
Auto-Owners Insurance | Offers inland flood coverage |
Farmers | Offers flood insurance through the NFIP |
Frontline Insurance | Offers hurricane deductible cash-back program |
Tower Hill | Offers flood insurance add-on |
Travelers | Offers flood insurance add-on |
But keep in mind that not every insurance company is available in every state, and some insurers are choosing to pull out of some states altogether due to extreme damage caused by hurricanes and wildfires.
The easiest way to make sure you are getting the best possible coverage is to compare quotes from multiple companies.
Frequently asked questions
Who insures coastal homes in Florida?
You might be able to find coastal home insurance from the following private insurance companies in Florida: Galt Insurance Group, Southern Insurance Group, Pablo Beach Insurance Group, or Gulfshore Insurance.
If these private insurers aren’t willing to insure your beach house, then your next-best option is to check out Citizens Property Insurance — Florida’s insurer for FAIR Plans and Beach and WIndstorm Plans.
How much is home insurance on the Texas coast?
The annual cost of home insurance on the Texas coast ranges anywhere from $2,157 in Freeport to $3,889 in Galveston Beach, according to our analysis of March 2022 home insurance rates provided by Quadrant Information Services. You can explore the most expensive and cheapest Texas cities for home insurance by checking out our complete guide to homeowners insurance in Texas.
How much is homeowners insurance on the beach in Florida?
The annual cost of homeowners insurance on the beach in Florida ranges anywhere from $1,808 in St. Pete Beach to $5,003 in Miami, according to our analysis of March 2022 home insurance rates provided by Quadrant Information Services. You can explore the most expensive and cheapest Florida cities for home insurance by checking out our complete guide to homeowners insurance in Florida.
Why is coastal insurance so expensive?
The biggest reason coastal insurance is so expensive is the risk of hurricanes and other inclement weather. Floods, hurricanes, and other extreme weather can cause significant damage to your home, which means insurance companies charge higher rates to account for the risk.
