For many, owning a home on the coast is a dream come true, whether that body of water is an ocean or lake. Owning that home, however, often requires an added set of insurance coverages on top of the standard homeowner’s policy. So what is the official coastal waters definition for insurance carriers?
For the most part, coastal waters is a term used in boating insurance to describe the distance between the shore and territorial waters. When it comes to homeowners insurance, the term commonly refers to the distance between the home and the body of water. This distance can vary by insurance company, so check your policy carefully. The average, however, is three miles.
What Additional Insurance Coverage Do I Need?
The weather plays an important role in how a coastal home’s policy differs from a standard homeowner’s policy. Coastal homes usually included separate deductibles for wind, hurricanes, and named-storms.
For example, if you live outside the coastal waters range as determined by your carrier and a hurricane tears off your roof, you will pay your standard home deductible to make the repairs. If your home is within the coastal waters range, you will pay your hurricane deductible, which is likely different from the standard fee.
To make sure you have the right coverage, know what your carrier considers the coastal waters definition for insurance. Then work with an agent to secure the right coverage.