Insurance brokers need to know the ins and outs of coastal property insurance before they sell to clients. Likewise, they must know the costs of coastal property insurance. Your primary responsibility as an insurance broker is to give a clear, accurate answer and help them navigate the complexity of coastal property policies. Thus, you should know the facts.
In this article, we’ll explore what Coastal Property Insurance is and how much coverage costs, so you can better advise your clients and ensure they have the coverage they need.
What is Coastal Property Insurance?
Coastal property insurance protects homes, apartments, condos, and business properties in coastal areas. Due to the risks associated with living near the coast, i.e., the threat of hurricanes, flooding, and erosion, coastal structures are typically more expensive to insure than those located further inland.
What are the types of Coastal Property Insurance?
There are several types of Coastal Insurance coverage, including:
Commercial Property Insurance
Commercial Property Insurance protects landlords and business property owners against losses caused by natural disasters, fire, and theft. Additionally, it covers damages to apartment buildings, condominiums, and additional structures like offices, garages, health facilities, swimming pools, fences, common areas, and storage buildings.
Standard Property Coverage
Standard Property Coverage protects against lawsuits from injuries or property damages of visitors to the insured property. Moreover, it extends to damages caused by fire, wind, hail, snow, ice, and theft. These things can cause chaos. However, exclusions may apply for wear and tear, floods, water damage, earthquakes, and wind damage in coastal areas.
Habitational Coverage
Habitational insurance covers commercial and residential properties, including condominiums, apartment buildings, and multi-unit dwellings. Also, a typical habitational insurance program includes policies for property, environmental impairment liability, general liability, and excess coverage.
Other habitational policies offer endorsements to broaden coverage for condo associations’ E&O and D&O fees, signage, water damage, accounts receivable, rental income losses, and equipment breakdown.
Besides habitational, standard property, and commercial coverage, other coverage options include Business Owners Policy (BOP), Liability Protection, Hurricane and Flood Endorsements, and Replacement Value.
How much does Coastal Property Insurance cost?
A standard homeowners’ policy can cost around $1,000 annually with a $1,000 deductible. Therefore, flood insurance in some coastal regions of Connecticut can cost $1,500 per year on average, while in other places like Florida, it can cost significantly more.
The pricing varies depending on many factors. Therefore, your client should understand the type of property as well as the construction materials they need. They also must know the age of the property and deliver estimates based on location. Moreover, there is also a level of risk management included in the plan.
About Snyder Specialty
Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039
