Home Insurance Articles
The Type Of Insurance You Should Get For Beach Homes
2010-08-12
Recent devastating financial losses caused by hurricanes and flooding in coastal areas, such as the $90 billion after hurricane Katrina alone with only $45 billion of that covered by insurance, has brought the issue of insurance types for beach homes to the forefront. Because of these losses, the face of available insurance types for beach homes has become subject to many changes. Still, with the possibility of property loss with a beach home and the fact that lending institutions require coverage, it is relevant to look at what types of policies are presently available.
First, the type of insurance policy that a home buyer should get depends upon the type of home that they are buying. Two types of policies that buyers may choose are dwelling and homeowners. What distinguishes these is that dwelling policies only cover property losses while the homeowners policies cover property with liability. Peril coverage is available for your home and its contents in each type of policy.
Uniquely designed policies for manufactured homes, condominiums, rental residences etc. are also available. The manufactured home type of policy covers both the dwelling as well as contents. Condominium owners can obtain policies which cover contents only. Buyers may add a provision which covers only the specific part of the condominium that is the buyer's responsibility for insurance as perhaps set up by the condominium regulations. If the coverage does not seem sufficient to the buyer, more coverage can be purchased. Renters of a beach property residence can obtain renter's insurance covering only their own contents. Note that, regardless of your type of beach home, flood and earthquake policies can and should to be obtained as a part of your policy or separately.
The most common homeowners insurance policy, known as hazard insurance, covers all aspects of the home providing liability, protection from accidents and injury to others, plus coverage for the structure itself and the contents. There are a few specialized homeowner policies which are also available to beach home owners. For example, there are policies which are limited to specifically designated items and "named perils policies" which are limited to specific locations or parts of the home. Also, there is the "older home policy" which allows homeowners whose homes have a higher replacement cost than the market value of the home to get insurance at a lower market value rate.
Whatever type of insurance a beach home owner chooses, it is important to stay up with the prevalent changes which are occurring within the insurance industry. Know your insurance needs, get to know a reliable insurance agent and seek their advice.