Key Insurance Coverages for Your Waterfront Home

Purchasing a waterfront property is an exciting venture, but high net worth (HNW) clients need the proper insurance to protect this asset. Waterfront properties require different insurance than houses further inland do, and a homeowner’s policy may not be sufficient. Depending on the location, HNW clients may need the following kinds of insurance:

  1. Homeowner’s insurance. Mortgage lenders require this kind of policy to secure a loan. Even if HNW clients don’t need financing, homeowner’s insurance is still a must. HNW clients need a robust policy that covers the complete replacement cost, belongings, and temporary lodging in the event of lengthy repairs.
  2. Flood insurance. This is another must-have for waterfront properties, as homeowner’s insurance policies don’t cover water damage from outside sources such as a flood. Waterfront properties are typically flagged as high risk, which increases premiums. HNW clients that require financing need to factor in the expense of flood insurance to avoid exceeding their loan qualifications.
  3. Windstorm insurance. Whether a HNW client needs this kind of policy depends on the location of their waterfront property. For waterfront properties in hurricane-prone areas, lenders typically require windstorm insurance. However, lakefront properties may not need this kind of insurance if windstorms aren’t common.
  4. Unattached buildings. Many waterfront homes have detached garages or large storage sheds to house boats, kayaks, or other equipment unique to waterfront properties. Not all homeowner’s insurance policies cover unattached buildings, so HNW clients may need additional insurance for these assets.
  5. Leisure vehicles. HNW clients may own boats, ATVs, golf carts, or jet skis to enjoy their waterfront property to the fullest. However, many insurance policies don’t include coverage for these assets. Depending on their existing policies, HNW clients may need separate policies to protect their leisure vehicles.

Every waterfront property has unique features, and HNW clients need a knowledgeable agent to help guide them through their insurance options. Contact a professional advisor at Windermere Insurance Group to learn more about protecting your waterfront property.