Coastal Home Insurance in NJ: Coverage, Cost & More

If your home is in a high-risk area such as a floodplain or on the coast, it may affect your insurance premium. a beach house with a dock and two chairs

You may need special coverage for coastal conditions. This can include additional deductibles to your standard home insurance policy.

Continue reading to learn all about coastal home insurance in NJ, including what it covers, what it costs and more.

What is Coastal Home Insurance in NJ?

Insurance companies have different requirements when it comes to insuring coastal properties. Most will take into account if you live less than three miles from the coast.

Coastal insurance includes specific policies related to the increased risk of weather damage due to living by the ocean or on the coast.

Why is Coastal Insurance Important?

A place on the coast is a great investment, but they are more at risk because of their location. They require unique coverage as opposed to standard types of home insurance. Coastal homes are more vulnerable to storms, flooding, and windstorm damage.

Coastal home insurance NJ includes separate deductible types that provide additional coverage against harsh weather conditions such as hurricanes, strong winds and storms.

Homes on the coast could also be prone to coastal erosion. As the ocean waves hit the shoreline it gets gradually eroded and crumbles away over the years.

Luckily there are measures in place to protect coastal homes such as stronger sea walls and embankments. Fixing any damage caused by coastal erosion will be costly, however, and it’s necessary to make sure your insurance policy covers you thoroughly.

What Different Coverages are Available?

Whether you need to insure your primary, secondary investment or rental property, Anderson Insurance Agency can guide you through coverage options and deductibles available to you.

It’s also important that you consider flood damage and insurance options to protect your home. We recommend different coverages to ensure you get the best from your coastal insurance.

Coastal insurance policies can be complex. The different deductibles often relate to various harsh weather conditions. For example, hurricane deductibles are not the same as windstorm deductibles.

Hurricane deductibles only apply to damage caused by hurricanes. Many hurricanes have passed through the state of New Jersey, and coastal homes are more at risk of wind damage and flooding.

Whether a hurricane deductible or windstorm deductible is available to you depends on several factors; your home’s proximity to water, and state regulations. Coastal properties, therefore, are entitled to these types of deductibles.

Different states each have their own classifications for hurricanes and storms. The state of New Jersey describes hurricanes and cyclones as storms with a wind speed of 74mph and higher.

The state is impacted by flooding caused by tropical cyclones, the most notable being Hurricane Sandy.

Flood insurance has become much more complex in the last few years. Flood damage can be excluded from home insurance even if you have other deductibles such as wind and hurricane damage.

If you live in designated flood zones, you are required by law to have flood insurance. It is also recommended if you live close to a body of water.

How do Deductibles Work?

For coastal insurance, deductibles are worked out in percentages. These depend on the insurance company policy. Deductibles can be a flat fee of between 1% and 5% of your home’s value.

National insurance companies tend to charge a higher 5%, which means for example if your home is insured for $500,000, you’d need to pay in $25,000 before receiving money from the insurance company.

With an independent company, coastal insurance in NJ can come with a hurricane deductible of less than 5%, saving you money.

What are the Costs?

Understanding coastal home insurance in NJ can be tricky. At Anderson Insurance Agency we offer a tailored service, and consider the optimum coverage for each unique case.

We are one of the largest flood insurance writers in the country and often offer consultation to other companies. Premiums can fluctuate and rates are not always the same, here we aim to provide you the options that meet your unique needs and budget.

What Additional Coverages are Available?

Ordinance and Law is a type of coverage that is offered to older properties for a complete rebuild. If your home is destroyed by a hurricane or harsh weather conditions, you will have coverage to rebuild it.

Your home will need to be upgraded to meet the latest building codes. Often an older property will be more likely to be in need of an upgrade.

Loss of Use is a policy that offers a replacement home in the event that your property is completely lost. Your insurance provider will outline what is classed as “temporary housing” and will give you options in the case of a natural disaster.

Your certified account manager will have the experience and expertise to provide you with all the necessary information about different policies and coverage.

It’s important to find an agent with the experience to fully understand the complexities of coastal insurance. Every case is different and at Anderson Insurance Agency, we can provide you with the custom coverage that you need.

An expert advisor can help fill the gaps in your home insurance policy to ensure you are covered for the additional risks living near the coast can bring. They will also give you peace of mind in knowing that you’re protected should the unexpected occur.

Whether you’re the owner of a large coastal property or rental seasonal home, we can provide you with a customized policy that fits your budget and needs. We make it our number one priority to ensure your family and coastal investment are protected.

For any further information about coastal home insurance NJ, contact a specialist today.