The American dream is the chance to own a home, and it is a dream that many Americans enjoy today. Our homes are sources of pride and in some cases are extensions of who we are. We also realize that a home is a major investment that a homeowner will want to protect. To this end protecting one’s home includes performing such tasks as installing a security system, video cameras, smoke detectors, etc.
The most important source of protection for one’s home is the purchase of insurance. In many cases depending on where your home happens to be built, you may need to have a specific type of insurance which is referred to as Flood Insurance. Coverage under the National Flood Insurance Program or FEMA, offers protection to homeowners of upwards of $200,000 dollars for structural loss of one’s home, but there are limits to coverage and if your losses are above this limit, you may want to seek out an insurance agency that handles flood insurance, and there are many independent insurance agents that offer this type insurance coverage.
Of course, where you live will determine just how much flood insurance you will need. If you happen to live in a coastal area, or have a home on a beachfront then you have some specific needs that need to be addressed. In many cases, buying Beachfront property may have a hidden cost that the average home buyer may not take into consideration…and that cost is obtaining Flood Insurance coverage.
In many beachfront areas of the United States, Flood Insurance has become very difficult to find. Things that effect obtaining insurance coverage in some of these areas include proximity to the waterline, beach erosion, and what “zone” the property you are looking to purchase is located in. These factors and others will certainly affect not only cost of a Flood Insurance policy, but whether an insurance company will even be willing to cover the risk of the property if it is located in a high flood zone area.
Of course, legislation and court cases also have had an impact on the ability to acquire flood insurance. Back in 2010, there was a case in the Texas Supreme Court that was being addressed on this issue. In a case called “Severance v. Patterson”, a case that involved interpretation of state property law and the Texas Open Beaches Act, in its ruling, the court informed the plaintiff, that her beachfront property had drifted, after the events of hurricane Rita back in 2005, just forward of the vegetation line, and due to this problem were now considered to be “on the public easement and that the houses could be subject to a removal order.”
In the above case and another similar state of Florida case, the eventual rulings and subsequent appeal processes affected the property owners and the rights of a state to claim property that experienced shifts along waterlines due to the effects of hurricanes or other natural disasters. Of course these court rulings have made it more difficult for the beachfront property homeowner to find Flood Insurance. And of course those decisions have also affected the cost to the insurance company and to the policy holder.
So while it may be everyone’s dream to have own a home, whether that home is close to the ocean, or not… a dream can very quickly turn into a nightmare. It can only benefit the prospective home owner to investigate zoning for the property and then find out about obtaining the proper amount of Flood Insurance coverage. So that losses and other issues that may arise due to a home being either too close to a waterline, or possibly in a high flood zone area can be effectively handled without catastrophic loss of property and or damage.
About the Author – Tim Ryan specializes in helping buyers find great deals on Naples Real Estate. You can visit Tim’s website where you can find thousands of Naples homes for sale.
My other aging 
If you followed the herd in 2004/2005 you helped to fuel the market crash. As backward as it may seem, I had hundreds of clients looking to purchase at the top of the market. From 2004 – 2006 my phones rang every 15 minutes with people willing to spend top dollar for Rehoboth Beach condos. Now that area homes are priced a good 15% – 30% lower than they were at the peak of the market my phones are dead. While it’s true prices may go a little lower before the market picks up again, if you purchase a property at the beach now you are already doing 15% – 30% better that those who purchased at the peak. If you wait much longer interest rates may increase and at this time they are already so low that they are not likely to go much lower.
