Your guide to coastal home insurance

Coastal homeowners insurance offers robust coverage to protect beach houses from the heightened threat of storm damage.

Headshot of Rachael Brennan
Headshot of Jennifer Gimbel

By

Rachael BrennanSenior Editor & Licensed Auto Insurance ExpertRachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.&Jennifer GimbelSenior Managing Editor & Home Insurance ExpertJennifer Gimbel is a senior managing editor at Policygenius, where she oversees all of our insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.

Updated|4 min read

Policygenius content follows strict guidelines for editorial accuracy and integrity. Learn about our editorial standards and how we make money.

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.

Compare coastal home insurance quotes in minutes

We don't sell your information to third parties.

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

Corpus Christi

$2,742

Fort Myers

$2,288

Jacksonville

$1,884

Miami

$5,003

Naples

$2,502

New York City

$1,769

Portland, Oregon

$858

San Diego

$1,333

San Francisco

$1,533

Savannah

$2,210

Seattle

$1,195

Tampa

$2,606

Virginia Beach

$2,445

Collapse table

How much is insurance on a beach house?

The cost of beach house insurance can range anywhere from $850 to over $5,000 — it varies widely depending on the size, location, and mitigation elements of your coastal property, among other factors.

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

Collapse table

Compare coastal home insurance quotes in minutes

We don't sell your information to third parties.

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.

More

Flood insurance

Since homeowners insurance typically doesn’t cover flood damage, you'll want to consider purchasing a flood insurance policy. In fact, if you have a federally backed mortgage and live in a high-risk flood zone, you’ll be required to. 

But even if your lender doesn’t require flood insurance, you should still consider it for a coastal home. Most flood insurance policies are underwritten through FEMA’S National Flood Insurance Program, but you may be able to purchase private flood insurance instead. 

→ Learn more about flood insurance

Compare

Windstorm insurance

Homeowners insurance typically covers wind and hail damage, but insurers may exclude wind coverage if you live somewhere prone to severe windstorms, like some coastal areas. 

If wind and hail damage is excluded from your policy, consider adding windstorm coverage or purchasing a separate wind-only insurance policy to ensure you're fully protected.

→ Learn more about windstorm insurance

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]  

Windstorm deductible

Also called a wind/hail deductible, your insurer may require you to pay this for different instances of wind and hail damage, like from a tornado.

Hurricane deductible

This is typically only triggered when the National Weather Service (NWS) or National Hurricane Center (NHC) reports winds of 74+ mph.

Named storm deductible

This is usually triggered when a tropical storm is officially declared by the NWS or NHC.

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]

Example of a hurricane deductible in action

Say you own a beach house that’s insured for $400,000 with a hurricane deductible that’s set at 3% of your dwelling coverage limit. This means your hurricane deductible is $12,000 (3% x $400,000).

A hurricane hits your beach house, causing $30,000 in damage to your roof. Because your home insurance company will subtract your deductible from your claim settlement amount, your insurance company will only pay out $18,000 to help pay for the hurricane damage to your roof.

How to get coastal home insurance

If you need coastal dwelling protection coverage, there are a few steps you’ll need to take, including:

  1. 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.

  2. Review coverage options. Your insurance agent can explain what coverages are available to you so you are able to make an informed choice.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

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.

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.

Compare coastal home insurance quotes in minutes

We don't sell your information to third parties.

References

dropdown arrow

Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of oureditorial standards.

  1. Insurance Information Institute

    . "

    12 Ways to Lower Your Homeowners Insurance Costs

    ." Accessed July 20, 2022.

  2. Insurance Information Institute

    . "

    Background on: Hurricane and windstorm deductibles

    ." Accessed July 20, 2022.

  3. Insurance Information Institute

    . "

    What if I can't get coverage?

    ." Accessed July 20, 2022.

Authors

Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Jennifer Gimbel is a senior managing editor at Policygenius, where she oversees all of our insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.

Questions about this page? Email us at .