High-Value Coverage Strategies for Insuring Luxury Waterfront Properties in Florida According to The Property Advocates
The year-round sunny days and gorgeous beaches help make luxury waterfront properties in Florida all the more desirable. With these special homes come specialized insurance solutions and risk management strategies to ensure great luxury coverage. The Property Advocates, an insurance law firm in Florida, explains why a high-value waterfront home should have a high-value home insurance policy protecting it.
What does high-value home insurance look like?
Waterfront properties, especially luxurious ones, appreciate in value at a higher rate compared to properties found anywhere else. The high demand for waterfront properties, paired with the lack of supply to meet the demand, adds to their value. If not serving as a priority or secondary home, waterfront properties are also a popular choice for people looking to generate an additional source of income through short-term rentals.
High-value home insurance is not a “one-fits-all” type of deal. What is included as a part of the luxury home, such as unique qualities and features, will influence the type of policy a high-value homeowner chooses. A high-end luxury waterfront home might include a boat dock or seawalls, and being located on the water’s edge means being at risk of coastal erosion. When selecting the right high-end home insurance, a homeowner wants to get these things covered.
Standard home insurance policies do not provide the coverage needed to insure a lavish waterfront Florida home properly. Such properties require more protection and more features than the standard home insurance policy can offer.
High-value home insurance key features
Key features that Florida’s high-value home insurance has are higher coverage limits, specialized coverage, replacement cost coverage, and umbrella liability coverage. High coverage limits offer more protection to high-value homeowners and cover all property and its contents. Due to the unique risks that come with owning a waterfront home, such as coastal erosion, specialized coverage offers peace of mind by offering risk protection. Replacement cost coverage provides the funding needed to repair or rebuild a property using similar types of materials originally used and is typically found in high-value home insurance policies. Umbrella liability coverage presents extra liability protection that goes further than the limits of a standard home insurance policy.
Waterfront properties and flooding
Being closer to the water has its perks but also risks. Flooding is a risk that any waterfront property could be impacted by, especially during hurricane season. Unfortunately, home insurance usually does not include flood damage coverage. Some Florida cities participate in The National Flood Insurance Program to help bridge this protection gap by offering homeowners the ability to buy separate flood insurance. Homeowners with luxury waterfront properties should purchase flood insurance to protect their investments better.
However, similar to high-value home insurance, not all flood insurance policies are the same. Some flood insurance only covers damage done to the structure of the building, but not what it contains. It is common for a flooded home to have more damage to its contents than its structure, so the safest strategy for complete protection against flooding is to select flood insurance that covers the home’s structure and all its contents.
About The Property Advocates
The Property Advocates, P.A. is a Florida-based insurance law firm that offers a range of personalized legal services, specializing in property insurance claims. They currently have offices in Tampa and Miami and almost 14 knowledgeable attorneys who are ready to go to bat for their clients. The team is well-versed in all steps of handling insurance claims, from filing a claim to appealing a denied claim or filing a lawsuit if needed, as many of their team members have worked for insurance companies and engaged in aggressive trial litigation.
