The dream of owning a waterfront property is one that many share. It conjures up the image of getting away on a quiet lake with your favorite fishing buddy, or having family and friends come over for a day on the beach. While there are certainly benefits to owning a home with access to natural bodies of water, it also comes with certain risks that need careful consideration before purchase.
Why Home Insurance is Essential for Any Property
Home insurance is a necessity for any homeowner. Although it is not required by law and it's essential to protect your property and personal belongings from damage, theft, or legal liability. For example, if you were to accidentally damage someone else’s property while building an addition to your house and it results in a lawsuit against you, home insurance would cover legal fees as well as repair costs that are not covered by your policy (i.e., if the other party was at fault).
Homeowners use their policies for many different reasons: fire protection; flood coverage; smoke detectors; theft coverage; water damage protection; water heater replacements; mold removal expenses; roof repairs and more.
Before buying a waterfront cottage or a house, consider that your standard home insurance may not cover damage from acts of nature like hurricanes or floods. Some policies do include flood coverage but it’s important to check with your provider before purchasing a policy to make sure you have what you need.
Flood Coverage for Waterfront Properties is Essential
Flood insurance is an important part of any homeowner’s insurance policy, but it’s especially important if you own waterfront property. As more and more homeowners have discovered, even a small amount of flooding can cause thousands of dollars in damage to your home. Just one inch of water can cause thousands of dollars worth of damage.
In most cases, a property owner must buy flood coverage as part of their home insurance policy if they live in an at-risk area. Flooding can happen in many different ways: sewer backup due to heavy rain, flash floods caused by excessive rainfall over short periods, and even tidal surges from the ocean.
Flood damage doesn't discriminate based on where your property may be located either. Flood damage can happen anywhere, including in your own backyard. If you live in a high-risk flood zone, it is important to purchase flood insurance so that you're protected if disaster strikes.
Windstorms and Hurricane Coverage
Windstorm and hurricane coverage is essential for waterfront property owners. Windstorm and hurricane insurance are often excluded from standard homeowner policies, so you'll need to purchase it separately. It's also important to know that windstorm and hurricane insurance typically only covers damage to the home itself (not contents), so make sure you have sufficient coverage on your homeowner policy for any personal items.
Before buying a waterfront cottage property, it's important to understand what is being covered.
Due to the unpredictability of Mother Nature, enhanced insurance is a must for waterfront properties. These homes are more likely to be damaged by storms and floods, and you may need to get a separate policy for a waterfront property because standard homeowner's insurance may not cover all of its unique risks.
If you want to get an idea of the importance of such coverage, think about what would happen if there were flooding in your area after heavy rains or snowfall melting off nearby mountains into rivers and streams that run through cities and towns. Flash floods are some of the most devastating natural disasters, so it's important to be prepared for that possibility.
Insurance policies are designed to protect homeowners from any liability or financial risk should a covered event occur. They also help you avoid losing your investment when disasters strike.
If you’re thinking about purchasing a waterfront property and want more information on this type of coverage, then please contact us today for a no-pressure consultation. We're happy to answer any questions about homeowner's insurance policies for waterfront properties.