Living on the beach is the epitome of the “good life” for many Sarasota residents. Let’s face it, our white sands and teal waters are some of the most beautiful in the world, and having the ability to build a home within a few feet is amazing.
However, there are some factors to consider should you wish to live on the beach – or along any of our waterways – such as canals, bays, or rivers. In the last decade, federal laws and FEMA regulations have changed the way in which homeowners finance waterfront living, primarily because of changes in homeowner’s flood insurance. Here is the information you need to know regarding flood insurance and waterfront living.
There are some real risks to living on the water. Flooding may be an issue, especially in the Longboat Key community which sits directly on the Gulf of Mexico. Although we have not experienced a direct landfall of a hurricane in many years, a large storm simply passing by can cause waters to rise significantly. Because of this, most new construction is elevated and designed with features to keep the living space safe from rising waters.
Winds also tend to be stronger at the beach, so it is necessary to take precautions to keep your home protected. Building codes require that beachfront homes are more resilient, but you can also add additional features such as roll-down storm shutters. These features will also help to lower insurance costs, as they lower the risk of damage – a very attractive situation for insurance companies.
Still, the flood insurance in recent years has become a major expense for those who buy or construct beach homes. In fact, in some areas it is nearly impossible to find affordable home insurance in storm-prone areas. If you build a Longboat Key or Sarasota waterfront home, will you be able to find insurance?
Home Insurance May Include Compromise
If you have a mortgage on your home, home insurance is a necessity. (Those who pay cash are allowed to choose their level of coverage, if any.) Many insurance providers will put some stringent rules in place regarding home insurance for waterfront and beachfront homes. Additional coverages are available, but can seem cost-prohibitive depending on the risk model which the insurance company operates under.
Although many of the large insurance companies decline new beach properties, they are far more likely to cover your home if you have other coverages with them. Therefore, you should always check first with your current homeowner’s insurance company to see if adding a beach home is possible. If you have a portfolio of services with them, they are far more likely to add your beach home to your coverages.
Over the last two decades, some of the major insurance companies have limited their coverage- however many out-of-state insurance companies have extended their coverage into the area. For instance, an insurance carrier primarily covering homes in the Midwest may decide to expand their portfolio to include homes in Florida. Because these beach homes may represent only a small percentage of their risk, home insurance tends to be much more affordable and available. You may wish to speak with a local Sarasota home insurance broker who has knowledge regarding all of the insurance companies currently providing coverage to beach homes.
Sarasota and Longboat Key general contractors Lindahl Construction will also provide guidance in regards all aspects of building a beach home, and will be happy to point you in the right direction in obtaining quality home insurance. With a little diligence, you should be able to find the perfect solution for you. Welcome to Sarasota – and enjoy your new custom home!