The cost of a home isn’t just the price to purchase it. Homeownership also includes things like insurance. In Florida not only is homeowner’s insurance part of the cost, but also flood and hurricane insurance. That can make owning a waterfront home in Tampa Bay more expensive, but not impossible either!
Over the last 5 to 10 years Florida has dealt with some very destructive storms. Because of that many insurers won’t write any kind of real estate policies in the state. That makes owning a waterfront home problematic, but not impossible.
Homeowners insurance is a policy that protects the homeowner from a few different things. First is liability issues should someone injure themselves while on your property. Second, it covers damages to the property in the case of a fire, break-ins (including property stolen) or other kinds of disasters that don’t involve floods or hurricanes. There are different riders, or additions that you can add. Your mortgage company will require that you have a policy, and will probably escrow money monthly to pay the premiums for you.
Flood insurance is procured through a federal program that requires certain areas to have insurance that will fix your home if it is flooded. Obviously, living at the waters edge is a place that will require it! Again, your mortgage company may require it as well and may escrow and pay the bill from the escrow. Flood insurance will pay to fix your home and replace damaged items if it is flooded. The problem may come in when the flood is because of a bad storm or hurricane. Which leads to…
Hurricane or storm insurance is insurance you can purchase that will fix your home and replace belongings damaged in a bad storm. As several bad hurricanes have proven in Florida, they can be utterly devastating. The Gulf area is sometimes spared hurricanes, but not always. Purchasing hurricane insurance is prudent.
Yes, it all adds up, and finding a company that will write policies for waterfront homes that are affordable can be challenging, doing so isn’t impossible, and is a smart move.