What to expect
- Higher premiums than similar homes inland.
- A separate wind, named-storm or hurricane deductible.
- Flood insurance as its own policy, often required by your lender.
- Fewer carriers willing to write policies in some areas.
- Questions about your roof age, shape and how it's attached.
How percentage wind deductibles work
Many coastal policies use a wind or hurricane deductible set as a percentage of your dwelling coverage, instead of a flat dollar amount. It usually applies only to certain storm damage, while your regular deductible covers other claims.
Hypothetical example: with $400,000 of dwelling coverage and a 2% wind deductible, you'd pay the first $8,000 of a covered wind claim. Check your declarations page to see what yours is and when it applies.
Flood is separate
Homeowners insurance doesn't cover flooding, including storm surge. Flood coverage comes from the National Flood Insurance Program or private flood carriers. If your home is in a high-risk flood zone and you have a federally backed mortgage, your lender will require it. Even outside those zones, many coastal homeowners choose to carry it. Flood policies can have a waiting period before coverage begins.
If carriers won't write a policy
In some coastal areas, private carriers limit new policies. Some states run insurance plans, sometimes called beach or wind pools, for homes that have trouble finding coverage. They can be a fallback, but coverage and price vary. It's worth comparing private options first.
Ways to lower your costs
- Storm shutters or impact-rated windows and doors.
- Roof straps or clips that tie the roof to the walls.
- A newer roof, especially one rated for high winds.
- A higher deductible, if you have savings to cover it.
- Bundling home and auto with one carrier.
Before you buy a coastal home
Get insurance quotes early, ideally once your offer is accepted. Ask about the flood zone, the roof's age and any past claims. Your lender needs proof of insurance before closing, and coastal policies can take longer to place.
How CapCenter's insurance agency helps
Our in-house agency compares coverage across multiple carriers and can help you understand wind deductibles and flood options. We review your policy each renewal to make sure you are not paying too much for your insurance.
