When it comes to purchasing a property in Sunset Beach, North Carolina, many home buyers have done their research or are rightly inquisitive about insurance costs. This is because Sunset Beach is a coastal town, and it does get hit with the occasional hurricane or tropical storm. This means that there are additional insurance coverage requirements for homeowners in some areas.
Sunset Beach has two different areas: the mainland area and the barrier island area. It leads some homeowners researching all of the costs of ownership to wonder if insurance requirements are the same for mainland homes as they are for barrier island beach homes.
Insurance for Inland Homes vs Coastal in Sunset Beach
Both locations face risks of being very close to the coast and within hurricane areas; however, the requirements can differ significantly based on the proximity of a specific property to the water, as well as the official flood zone boundaries for a property.
Key insurance differences in mainland homes versus coastal homes
Flood insurance
Flood insurance is required to be carried by property owners. If the property is in a special flood hazard area, this can include zones labeled as E, VE, or V. This is mandatory for properties using federally backed mortgage programs. In Sunset Beach, you will find beachfront, near-Ocean, Canal, and marshfront properties within these zones.
The closer a property is to the coastline or a body of water. The higher insurance premium is going to be for a homeowner. This is due to the storm surge exposure and a higher risk of an emergency incident impacting the property.
Mainland areas, such as the neighborhood of Sea Trail, are in a moderate to low risk zone X. This means that lenders are not typically requiring the additional premiums and insurance coverage. However, having the coverage is strongly recommended for homes because these areas can still flood with larger storms.
Wind and hail insurance
In coastal Brunswick County, the standard homeowners insurance policy often excludes or limits the amount of coverage for wind and hail because of hurricane risk. This means that several properties will need separate additional coverage for wind damage. Many homeowners find this coverage through the North Carolina Insurance Underwriting Association.
The closer a home is to the beachfront/shore, the higher the cost, and the stricter the underwriting process for getting the coverage. An inland home is easier to access this additional coverage at a lower rate with a lower deductible.
It is recommended that before you purchase a Sunset Beach property, you research the specific insurance requirements for the property. When it comes to inland homes versus homes closer to the water in Sunset Beach, inland homes are going to require less coverage as they are prone to face fewer inclement weather risks compared to homes closer to the shore. It is something to consider when purchasing a Sunset Beach property. It can greatly impact the affordability of your home purchase. It is always wise to make sure you calculate these potential hidden costs of ownership to avoid buyer’s remorse or stretching your budget too thin in your homeownership.
If you are considering purchasing a home in Sunset Beach, please contact us. We are here to help you with any Sunset Beach real estate needs, both buying and selling properties. When you are ready to buy a Sunset Beach home, whether a new construction home or an existing home, the team at Sunset Beach and Beyond is here to help you find the best home that fits you and your needs
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