Oceanfront Property Risks You Should Know Before Buying

Some people dream about owning waterfront property, and living oceanside has its perks. However, there are some risks when it comes to living along the water that you may want to consider before investing your money — like being hit by storms and waves or your home getting flooded. You'll need to research your insurance company and find out what kind of coverage they offer for waterfront property, plus have some knowledge of what type of weather hits the area you're looking to live in. There are multiple types of home insurance you may need.

There are all sorts of benefits to owning waterfront property — from all of the enjoyment you can have with coastal living to the fact that these homes are often worth extra money and can increase in value. While you may long for those gorgeous views of the water, that same water can come with all sorts of hazards that may cause damage to your home and your investment. When your beautiful view has the chance of turning into a giant wave that sucks your home into the sea, it can put a damper on the fantasy. That's not to say you shouldn't get yourself the oceanfront property of your dreams, however — it simply means you shouldn't go into this adventure with your eyes closed.

So, you've got some oceanfront property on your bucket list, perhaps an all-glass oceanfront Malibu home, and now it's time to weigh the risks. First off, nature plays a role in some of the dangers of living waterside. Climate change can cause water levels to rise and fall, so your oceanfront property could become a sand-front home, or it could end up flooded. Then there are the natural disasters that often cause flooding and damage. Every state in the US has experienced flooding at some point during the last five years, though not all of these instances were coastal homes. The devastation from hurricanes and tsunamis, among other watery disasters, can leave you with no home at all — even the best building plans can be thwarted by this type of weather. For basic flooding, look for a house up on stilts. This may protect your home, but another key factor in protection is the right insurance coverage.

You'll want a policy that covers water and storm damage, so research insurance companies that offer it. Your basic policy isn't likely to offer this without some additional costs, but plunging ahead with the wrong type of cover is a mistake to avoid when buying home insurance. Insurance costs vary by coastal city, but you'll be looking on average at around $900 to over $5,000 a year to insure an oceanfront home. The breakdown of some of the additional coverages you will need includes wind coverage and flood insurance, and you'll likely have extra deductibles for windstorm and hurricane damage. Ensure you have coverage that will replace your home if the worst-case scenario happens.