Some Insurance Considerations for Homes on the Beach

Home insurance is nothing short of essential. In the US, it has become a mandate, not by law but due to multiple factors — natural or otherwise. The tenants are required to have insurance, while owners get home insurance policies on their part to protect their properties against unforeseen circumstances.

Cut to the special scenario of having homes by the beach as second homes or primary dwellings, and there’s much to consider while making the insurance decision.

Beach homes are a different and special category with unique yet specific requirements regarding insurance premiums. Why? Because of location, requirements, renting options, and a lot of other factors.

Let’s explore beach house insurance and what considerations are paramount while opting for it.

Why Exactly Do You Need a Beach House Insurance?

Beach homes are dream homes for people, and states like Florida, Michigan, etc., are the current hotspots for related purchases. However, these homes come with added responsibility and insurance requirements. Although the value of these premium properties has been increasing over time, there are still added pros and cons to owning a beach house and handling their insurance covers.

For one, beach homes are not as easy to insure because they are more prone to damage compared to homes in the suburbs, nestled in safe urban areas. Beach areas are often high-risk zones as natural calamities like earthquakes, hurricanes, and floods are more common occurrences. 

That’s precisely why homeowners need special cover and add-on’s on their already owned home insurance policies, especially for their beach homes. It is so because disaster cover is not there in most homeowners’ policies, making it a matter of focus and notice.

On top of this, empty homes are more prone to theft, making insurance a prerequisite for your dream beach home, in case it is not your primary residence. One homeowner policy cannot insure two properties because all properties have their valuation and requirements. And in this case, beach homes need special attention when discussing insurance matters.

Many people buy beach homes as their vacation homes, so the insurance can be clubbed under a second home insurance policy — clubbing your base and vacation home under one umbrella.

Factors That Increase the Price of a Beach House Insurance

Various aspects can considerably escalate your beach home insurance premiums. Here is a rundown of the most critical factors:


Location is the prime aspect and reason for you to see a raise in your insurance premium. If your home is extremely close to the beach, your property is seen as highly susceptible to risks like natural disasters. For this reason, you would need additional coverage that protects your property from such calamities.


The size of your property is another reason your beach house insurance price will surge. The bigger the size, the more the damage would be, leading to higher coverage requirements when buying an insurance policy.


If your home is equipped with high-end features and amenities like a pool, indoor spa bathroom, elevators, etc., your insurance premium will go up. It is so because all these liabilities need extra insurance, adding up to the base insurance premium rates.


Renting your vacation home to others can spike up your insurance premium as you would need to have add-ons to protect your homes from other uncertain aspects. These can be a little more expensive than the policies and premiums lenders have to incur. Vacation homes even have higher mortgage interest rates, to top it all.

How To Reduce the Cost of Your Insurance Policy

The average insurance premium price of vacation homes in the US can start from $2000 and touch a significantly higher price, based on multifarious factors. With a surge in insurance rates, it is vital to understand how to reduce the cost of your insurance policy.

Here are some tips on reducing the cost of your insurance policy:

  • Buy a home at a safe distance from the beach to reduce the risk of damage to your property, thereby decreasing the insurance premium.
  • Try to use add-ons to a home insurance policy that you already have; it saves you from paying extra dollars.
  • Customize your policy after getting your property value based on the factors mentioned above that impact the insurance rates by and large.

At Gonzalez insurance, we have experience in valuing properties and coming up with customized insurance quotes. If you have a beach home or are planning to buy one, contact us, and our experts will help you get the best options and add-ons suited for your property.