Coastal homeowners insurance costs

[wildbill59]

In light of Katrina and a trip to the Outer Banks 4 years ago and seeing 1/2 million to multi-million dollar homes lining the beaches do any of you know what these people pay for homeowners insurance? Not just fire,theft etc. But what's the cost to insure against hurricanes. Also, if the waves come over the dunes, is this considered flooding?

 

[BillP]

Re: Coastal homeowners insurance costs

It really depends on the area. I'm in Florida and insurance rates have doubled, trippled, etc along with hurricanes and inflation. Many folks are going self insured now.<br /><br />And yes, waves breaching the dune line is a flood. There are two basic policies...windstorm damage and flood damage. Rain is with windstorm and rising water is flood.<br /><br />When hurricane Andrew hit south Florida I know of a $140k house with insurance that went from $300 to $3500 the following yr. That person stopped buying insurance and is still self insured...the house is now worth $500k.<br /><br />The same thing is happening to houses now. I have two and both policies nearly doubled last yr but deductables remained the same...2% of policy value (not repair cost). My annual policies rates now are approx $600-$700 per each $100k of insurance and that includes flood insurance. <br /><br />I have another policy on a commercial bldg that went from $1500 to $5000 LAST yr. Deductable went from $500 to $25000! That's for $450k worth of building replacement and I could find only one insurance company to write a policy. <br /><br />I'm a native Floridian and thinking seriously about cashing in and leaving the state. It's getting where only the rich can afford to live along the coast here. I'm not one of them.