Coastal Insurance Survival Guide

By David ClausenFind us on Google Plus

Coastal Insurance Survival Guide

I get this question quite often.

“Hi, I live near the water and had damage from Hurricane Sandy.  I’m being cancelled from my insurance company due to proximity to the water AND I have 2 claims in the past 3 years.  What do I do?”  Great question!  Here’s the answer…

Generally speaking, If you have had a loss from a Hurricane it will show up on your C.L.U.E. (Comprehensive Loss Underwriting Exchange) report as a catastrophic claim.  Insurance companies that handle coastal risks understand that you may have had some minor flooding or wind damage due to a hurricane or catastrophe.  As long as your home has been fully repaired you should have no problem obtaining insurance in the preferred marketplace.

How can I get the best rate from a highly rated carrier?  Another great question!

Top 5 factors in getting the best rate for Coastal Homeowners Insurance

1.) Fix all the damage– Insurance companies are very reluctant to insure a home that has any damage existing from a hurricane.  Save receipts, take pictures, state your case!

2.) Keep up your credit– Most coastal carriers take the “Big Picture” into account and part of that is your Insurance Score.  Having excellent credit can make the difference between a company taking you or saying “Next!”

3.) Distance to water– Every company has different guidelines for distance to the water.  Are you on a canal?  Maybe up on a bluff?  Let them know that you are 50ft up on a bluff or that you are on a canal one mile from open water.

4.) Reconstruction value of home– Different markets exist for differently valued homes.  Explain the construction quality of your home.  Is it super high-end?  Or is it normal builders grade?  This can greatly affect the per square foot replacement cost and therefore the best carrier to approach

5.) Don’t have additional losses It becomes a major challenge to write a coastal risk when you have a hurricane loss or two and then throw a claim for something minor on top of it.  Keep the deductible high and fix the minor stuff!

Getting reasonable homeowners insurance near the water is not only possible but probable. Pay attention to the 5 factors, fix all your damage, and you will have no problem finding a highly rated reputable insurance company that wants your business!


Coastal Insurance Solutions – Rocky Point NY – 631-782-3175

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