In many cases, you will find that a standard home insurance policy doesn't offer the complete protection you need for your waterfront home. You may need to increase your coverage limits or buy additional riders, depending on your circumstances, to get the protection you require. Here are some of the issues that trigger this inadequacy.
Waterfront homes are susceptible to flooding, and the risk of flooding is one of the top concerns insurance companies have with such homes. The risk of flooding rises during the rainy season when the nearby water body swells, and the water may reach the nearby homes. The risk of flooding is also high for waterfront homes because most of them are located in low-lying areas.
Despite the risks, standard home insurance doesn't cover flood damage. You have to buy separate coverage or add a flood policy rider to your standard policy to get compensation after flood damage. Note that a flood policy may be a requirement from the government or your mortgage lender, which means you may have no option but to buy it.
Wind damage is also common with waterfront homes. The temperature changes, topography, and general micro-climate of areas near large water bodies make them susceptible to strong winds. Thus, you face higher risks of wind damage if your home is next to a lake or an ocean than homes next to rivers do.
Now, wind damage may or may not be a staple of your standard home insurance policy. It depends on your home insurance company, the type of wind, and the nature of damages the wind may have on your home.
For example, many home insurance companies require separate policies for hurricane-class winds. Also, even if your policy covers wind damage, it might leave out related damages such as flood damage or sewer backups. Therefore, find out what your policy covers and doesn't cover and buy additional coverage if necessary.
Many waterfront homes have additional structures that other homes may not have. For example, you may have a boathouse, a dock on the water, or even a barrier that helps keep the floodwaters away. These structures may also get damaged by the same disasters that might damage your house.
Now, standard home insurance does cover additional structures; it is just that the coverage might not be enough. After all, coverage for additional structures is usually limited to 10% of the main building coverage. This 10% may be adequate for a home where the other structures are just a few storage houses and maybe a fence. However, it might be inadequate for a good waterfront home with several expensively crafted structures. In such a case, increasing your coverage for the other structures will help cover them adequately.
For more information, contact a homeowner's insurance company in your area.