Your guide to coastal home insurance

Coastal homes typically need more comprehensive coverage than what just a standard homeowners insurance policy offers. That’s where coastal home insurance comes in. These are specialized policies provided by select insurance companies that include robust coverage to protect beach houses against tropical storms and hurricanes that many standard home insurance policies will limit protection from.

However, due to the high risk of coastal homeowners filing a claim, many companies limit the number of beach home insurance policies they’ll write — if they even offer them at all. If that’s the case, you may need to rely on your state’s Fair Access to Insurance Requirements (FAIR) Plan to find coverage for your beach house. Just keep in mind these policies are typically more expensive and offer less coverage than private coastal home insurance policies.

What is coastal homeowners insurance?

Coastal homeowners insurance (also called beach house insurance) is a comprehensive home insurance policy specifically designed for homes near the water that are at heightened risk of windstorm and water damage. 

This type of policy usually comes with replacement cost coverages for both your home and belongings — meaning depreciation isn’t factored into the cost of repairing your home or replacing your stuff. Beach house insurance also typically covers your home against all hazards except for those explicitly listed as exclusions in your policy. This usually includes perils like flooding, and in some cases, wind and hail. (More on that below.)

Because beach houses have a higher risk of damage due to severe weather, most coastal home insurance policies come with special deductibles that are triggered when your home is hit by a hurricane, named storm, or windstorm. (We’ll chat more about coastal home insurance deductibles in a minute.) 

Average cost of home insurance in coastal cities around the U.S.

Here’s a look at the average cost of home insurance in popular U.S. coastal cities, according to our analysis of home insurance rates provided by Quadrant Information Services.

Coastal city	Average annual cost
Corpus Christi	$2,742
Fort Myers	$2,288
Jacksonville	$1,884
Miami	$5,003
Naples	$2,502
New York City	$1,769
Portland, Oregon	$858
San Diego	$1,333
San Francisco	$1,533
Savannah	$2,210
Seattle	$1,195
Tampa	$2,606
Virginia Beach	$2,445

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What is the difference between standard home insurance and coastal home insurance?

Coastal home insurance is harder to find and more expensive than standard home insurance because most companies don’t want to take on the increased risk that comes with insuring homes near the coast.

Here’s a quick look at the differences between standard home insurance and coastal home insurance:

	Standard policy	Coastal policy
Dwelling	Replacement cost	Extended or guaranteed replacement cost
Other structures	Actual cash value	Extended or guaranteed replacement cost
Personal property	Actual cash value	Replacement cost coverage
Where to find a policy	Most home insurance companies	Specialized insurance carriers or FAIR Plans
How much it costs	National average of $1,754 per year	Varies, but typically more expensive
Deductibles	One deductible — between $500 and $2,000	Multiple deductibles — 1% to 10% of your dwelling coverage limit

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What other coverages do I need for a coastal home?

Homeowners insurance excludes coverage for certain perils that coastal homes are at risk for, like flood damage, and in certain states, wind and hail damage. This means you may need to purchase two other insurance policies on top of your standard home insurance to ensure you're fully protected.

3 types of deductibles for coastal homes

Home insurance deductibles are the out-of-pocket expenses you’ll need to pay before your insurance kicks in. Homes in coastal areas may have separate deductibles for different types of storms, according to the Insurance Information Institute. [1]  

These special deductibles are typically set at 1% to 10% of your dwelling coverage limit, though it varies by state around how much they can charge and when the deductibles are triggered. Check with your insurer about which deductibles you have and how they work. [2]

How to get coastal home insurance

If you need coastal dwelling protection coverage, there are a few steps you’ll need to take, including:

1. Reach out to an agent. Insurance is complex and it is important to work with an expert who can help you make sure you have the right coverage for your needs.

2. Review coverage options. Your insurance agent can explain what coverages are available to you so you are able to make an informed choice.

3. Choose your deductibles. In addition to choosing a policy, you’ll also need to decide how much you can afford to spend out-of-pocket in an emergency. The higher your deductible, the lower your rates will be.

4. Buy flood insurance. Flood insurance is a necessity if you live on waterfront property, so make sure you purchase flood coverage along with your coastal dwelling protection coverage.

5. Consider any other insurance coverage you need. Consider any other specialized coverage you may need, like scheduled property coverage for jewelry or musical instruments, in addition to beachfront property coverage.

6. Buy coverage before you need it. Flood insurance doesn’t cover anything until your policy has been in force for 30 days, so make sure you buy coverage at least a month before hurricane season.

What if I can’t find coastal homeowners insurance?

If you can’t find a company willing to insure your coastal home, you may be able to get coverage through your state’s FAIR Plan or Beach and Windstorm Plan. [3] These are insurance programs designed for high-risk homeowners who’ve struggled to find a policy on the private insurance market. 

When it comes to home insurance, homeowners are required to have an insurance policy in place before a bank will issue a mortgage. But homeowners who need an oceanfront home policy may be in a bit of a conundrum: private insurers will often deny coverage for high risk homes, so how can you get insurance if nobody will sell it to you? This is where FAIR plans come into play. There are a few differences between FAIR plans and private insurance, including:

While FAIR plans are run on the state level, they’re funded by private insurance companies licensed to do business in the state. These policies are typically more expensive than standard homeowners insurance policies and offer lower coverage limits.

How comprehensive the coverage options are will depend on your state. To qualify for coverage, you may need to prove you were denied coverage from several private insurance companies a certain number of times, typically three. 

What coastal states offer FAIR Plans or Beach and Windstorm Plans?

Twenty-seven coastal states around the U.S. offer some sort of FAIR Plan, while only seven states situated along the Gulf and East Coasts have Beach and Windstorm Plans.

	FAIR Plan	Beach and Windstorm Plan
Alabama	✓	✓
Alaska
California	✓
Connecticut	✓
Delaware	✓
Florida	✓	✓
Georgia	✓
Hawaii	✓
Illinois	✓
Indiana	✓
Louisiana	✓
Maine
Maryland	✓
Massachusetts	✓
Michigan	✓
Minnesota	✓
Mississippi	✓	✓
New Hampshire
New Jersey	✓
New York	✓	✓
North Carolina	✓	✓
Ohio	✓
Oregon	✓
Pennsylvania	✓
Rhode Island	✓
South Carolina	✓	✓
Texas	✓	✓
Vermont
Virginia	✓
Washington	✓
Washington, D.C.
Wisconsin	✓

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Best coastal home insurance providers

While there are many home insurance companies that offer coastal property coverage, some have additional insurance options more catered toward high-risk homes. Here are some of the best coastal home insurance companies for a variety of different considerations.

But keep in mind that not every insurance company is available in every state, and some insurers are choosing to pull out of some states altogether due to extreme damage caused by hurricanes and wildfires. 

The easiest way to make sure you are getting the best possible coverage is to compare quotes from multiple companies.