What Insurance is Available for Coastal Risks?
Massachusetts has long stretches of beautiful coastal regions, but living in these areas presents some unique risks. From major storms to on-water accidents, coastal residents need to be prepared for the worst that can happen. Thankfully, there are a number of insurance products available that can help mitigate some of the risks that come with living in these regions.
Insurance companies don’t offer any one insurance product that protects against all coastal-related risks. Instead, residents who live in these regions usually must purchase multiple insurance policies that provide a web of protections.
When considering what policies to purchase, residents should work closely with a knowledgeable insurance agent who serves these regions so that they can select the most appropriate policies. A knowledgeable agent will be able to provide informed recommendations based on a resident’s specific location and risk exposure.
What Insurance Coverages Should Massachusetts Coastal Residents Consider?
Living along a coast in Massachusetts presents multiple potential risks that different insurance coverages may protect against. A few insurance policies and coverages to consider include:
- Flood Insurance: Many properties in coastal areas are in regions deemed to be high-risk flood zones, and these zones can cover substantial areas in coastal regions. They don't run just along the waterfront itself.
Properties that are in high-risk flood zones normally have to be insured with flood insurance, which can usually be obtained at a subsidized rate through the National Flood Insurance Program (NFIP). An agent who’s familiar with coastal risks can check whether a specific property is in a high-risk zone and help obtain coverage through the NFIP if necessary.
- Homeowners Insurance - Other Structures Coverage: Most homeowners insurance policies include other structures coverage as a standard or optional protection. The coverage generally protects secondary buildings on an insured property, such as sheds and detached garages. If waterfront property also has a boathouse, dock or retaining wall, check to see whether this coverage applies to those structures.
- Boat Insurance: Residents who own a boat usually should purchase boat insurance, and sometimes are required to by the terms of a loan. Homeowners insurance policies may provide basic property protection for a small boat, such as a canoe, kayak or dinghy, but it generally doesn’t cover larger boats or offer liability protection for on-water accidents. Boat insurance may protect both a boat and the owner in the event of an accident.
- Umbrella Insurance: Residents who live directly on the waterfront often can benefit from the additional liability protection that umbrella insurance provides. Should someone have an accident while swimming, they or their family members may sue the property owner with a negligence claim. Such a lawsuit can be quite expensive, especially if there’s a tragic drowning. Umbrella insurance frequently offers supplemental protection if a claim like this exceeds the limits of an underlying homeowners policy.
How Can Coastal Residents Save on Insurance Policies?
While nearly every insurance policy comes with policy-specific discounts, there are three general ways that coastal residents can usually save on the insurance coverages they need.
First, shopping for policies with an independent insurance agent is the easiest way to find low rates on coverages that are needed. Independent agents aren’t obligated to work with only one insurer, but they can request quotes from multiple insurance companies so that residents can identify what companies offer the lowest rates.
Second, many insurance companies offer multi-policy discounts if more than one property and casualty insurance policy is purchased through them. Because of this discount, it usually makes sense to purchase homeowners, boat and umbrella insurance from the same company.
Third, flood insurance is normally most affordable when purchased through the NFIP. If a property qualifies for this program, this is usually the best way to get flood coverage.
How Can Coastal Massachusetts Residents Get Help With Insurance?
If you live along one of Massachusetts’ coastal regions and need help with insurance coverages, contact the independent insurance agents at Roger Keith & Sons Insurance. Our agents are well-versed in these coverages and ready to assist you.
