What are considered high-risk coastal properties? These are locations that are most susceptible to catastrophes and natural hazards. When left uninsured, they could pose huge amount of expenses to owners and renters as well, should a calamity strikes.
Image Source: Gulf Shores & Orange Beach
According to the May 2016 report “Residual Market Property Plans” by the Insurance Information Institute (I.I.I.), the exposure value of the residual property market in states that are more exposed to hurricanes has continued to decline from its peak levels in 2011. State natural catastrophe programs in various states including Alabama, California, Florida, North and South Carolina, Louisiana, Mississippi, New Jersey and Texas were reviewed in the report. There is a supposed perceived threat for state finances, policyholders, and taxpayers that might result from underpriced coverage and increased assessments in the coming years.
What does this mean for coastal property owners?
As the report warns, there may be a reduction in growth opportunities for carriers and choice if you are a policyholder or a possible distortion in the true cost of insurance coverage.
The Coastal Resources Commission (CRC) implements rules allowing property owners to protect imminently threatened oceanfront structures on a temporary basis. The following options are available for property owners:
- Do note that a Coastal Area Management Act (CAMA) general permit is needed to use sandbags.
- Beach bulldozing to shore up the foundation of a building
- Relocation of structures
- Beach nourishment projects that are dependent on specific conditions
- Exceptional cases where seawalls are permitted, provided that they do not adversely impact adjacent private properties and resources
Managing a coastal property may unnecessarily consume an owner’s time and money. To avoid huge expenses and damages to property, it is important to work with an insurer that has an excellent reputation for providing yearly insurance coverage. Whitehaven’s commendable record of writing high-risk coastal properties since 1994 proves the company’s ability to help you in the effective management of your property from unforeseen calamities.
By Dez Duran-Lamanilao