High tide, lower stress: Protect your coastal home

Nestled between the ocean and sandy beaches along the Atlantic and Gulf coasts, coastal homes offer a sense of serenity. However, living on or near the shore brings higher chances for flooding issues—from rising sea levels due to global warming and tidal surges, to heavy rainfall from storms and more. These factors highlight the importance of homeowners insurance in coastal regions to have a comprehensive insurance program in place. In this article, we dive into how to obtain insurance and help safeguard your property and assets against potential loss.

Obtaining insurance in coastal areas – the challenge

While having insurance for your coastal home is key to helping protect against loss, obtaining it can be challenging. High vulnerability to hurricanes, tropical storms, and sea-level rise make these areas high-risk for insurers. This situation is further compounded by increasing climate change impacts which intensify the frequency and severity of these weather events. As a result, some insurance providers are hesitant to offer coverage, and those that do often impose high premiums, making it difficult for homeowners to secure affordable, comprehensive flood insurance.

Navigating the insurance market

In today’s world of insurance and frequent extreme weather events, one of the most important relationships you will maintain is the partnership with your insurance advisor. It’s important to work with an advisor who has keen attention to detail and the experience needed to guide you through securing the right coverage for your needs and effectively managing the aftereffects of an extreme weather event.

Your advisor should be:

• Your partner to collaborate with insurers from different firms on your behalf to collectively provide coverage options—keeping you well-informed throughout the process.
• Your liaison who acts as a bridge between you and the insurance company—assisting with everything from securing a policy and updating your home details, to guiding you through the insurer’s requirements for coverage.
• Your post-event support to help streamline the claim filing process, manage insurer communications, verify policies for additional coverage, such as additional living expenses if you’re temporarily displaced from the property, and more.

Securing the right insurance

As previously mentioned, coastal homeowners often have difficulty securing the insurance coverage they need and have limited options. One example is the Massachusetts FAIR Plan option, but this is typically used as a last resort for homeowners who are unable to secure coverage elsewhere. Plans like this often come with limited coverage that may not fully address coastal risks, as well as higher deductibles, especially for wind and hurricane-related damages.

There are, however, other options available for eligible homeowners throughout Massachusetts, Florida, Texas, and soon to be more coastal states that should be considered. For example, The Baldwin Group’s program aims to provide a more comprehensive and cost-effective alternative through our partnerships with highly rated insurance companies to provide customized policies, expert consultation, and comprehensive protection, as well as deliver responsive service during every phase of the policy. Currently, homeowners in Massachusetts, Florida, and Texas (additional states coming soon) can talk with our advisors about eligibility, coverage, and available options for our coastal insurance program.

Understanding flood insurance

Many homeowners mistakenly believe their existing coverage will protect them from all forms of water damage, but homeowners’ insurance policies typically exclude damage from external flooding due to extreme weather and groundwater seepage. Flood insurance is designed to address the unique challenges of flooding that aren’t covered under your other policies.

Homeowners have a couple of options when seeking out flood insurance for their coastal homes. One is to obtain it through the National Flood Insurance Program (NFIP), backed by the federal government and Federal Emergency Management Agency (FEMA). The other is purchasing it through a private insurance company, which typically will offer higher limits and broader coverage. The Baldwin Group’s flood insurance solution, for example, is among those that offers higher limits and covers more than the NFIP, such as loss of use, replacement cost, pool repair/refill, and customized endorsements for special needs .

Take a look at some key differences between the NFIP and private insurance companies in this article.

Take steps to help lower premiums and maximize coverage

Think about the investments you can make in your home now to make it more resilient to climate-related risks and help improve your risk profile, such as:

• Install hurricane shutters and flood-resistant materials, as well as reinforcing structures.
• Install a flood alert system to help detect potential floods and give yourself time to protect your property.
• Perform regular maintenance—checking for leaks, mold, and structural integrity to help prevent extensive damage.
• Follow local codes and regulations related to flood prevention.
• Regularly update the inventory of your home’s valuables and upgrades to help expedite the claims process and potentially improve both the coverage and premium amounts.
• Improve drainage around your home by keeping gutters and downspouts around your house clear and free of debris to prevent clogs and direct water away from your foundation and consider installing a French drain or sump pump in basements that can help remove excess water before it causes damage.
• Use sandbags and flood barriers around doors and low-lying areas to help block, absorb, and redirect water
• Consider flood gates, panels, and shields placed around building equipment (e.g., ac units) that’s vulnerable to water damage as well as in front of doors, garages, windows to provide additional protection (may require a permit from your city or town)
• Elevate and waterproof your home by sealing cracks in your foundation to prevent leaks and moving electrical outlets, appliances, and HVAC systems to higher ground wherever possible.
  • FEMA compliant flood barriers:
    • AquaFence: https://www.aquafence.com/floodwall
    • Quickdams: https://quickdams.com/
    • Garrison Flood Control: https://www.garrisonflood.com/
    • Flood Proofing: https://www.floodproofing.com/case-studies
    • Flood Risk America: https://floodriskamerica.com/

•  Consult with your insurance advisor for expert help to find and secure the right coverage.

Be prepared for shifting tides

Securing the right insurance coverage is an essential part of coastal living. While obtaining flood insurance in those regions can present challenges, there are options available and taking proactive steps to enhance home resilience can greatly improve your risk profile. Work with the experienced team at The Baldwin Group to help ensure you’re properly covered from high to low tides. Click here to get started.