Coastal Homeowners Premiums Are Increasing but Coverage Not Keeping Up

Storm Deductibles can Surprise You

Many Cape and Island homes now carry high wind or hurricane deductibles. Average deductibles rose 24.5% year-over-year as insurers shift more financial responsibility to homeowners (source). This trend makes it even more important to know your true deductible before the next storm hits because these are not small amounts. For example, a 5% deductible on a $1M home equals $50,000 out of pocket before coverage begins. Though it looks like protection on paper, it may be unrealistic in practice. Knowing your true deductible matters before the storm hits. 

Flood Insurance Remains a Major Gap



Standard homeowners policies do not cover flood damage. That’s a shock for many local homeowners after a surge, especially with the increased intensity of rainfall we’ve experienced this year. Next time a major storm rolls in, ask yourself: would your current policy respond? Flood is not only a Florida or “flood zone” problem anymore—they are impacting “non-flood zone” homes too. With weather patterns being unpredictable and extreme weather hitting unusual areas, everyone is at risk. Without the right policy, one major event can drain savings overnight.

Homes Face Rising Code and Demolition Costs

No matter when your home was built, rebuilding today comes with higher expenses than just a few years ago. For example, a home insured in 2019 may now face dramatically higher construction and labor costs in 2025. Although many homeowners believe their current coverage will rebuild their property, standard policies often fall short.

Here’s the catch—without Ordinance & Law coverage, you pay out of pocket for required code upgrades. In addition, most unendorsed premiums do not include demolition costs. When only part of a room or structure is damaged, rebuilding often requires tearing down the entire section to meet modern standards. These added costs can be significant, leaving homeowners exposed without the right endorsements in place.

Why a Broker with Market Access is Your Advantage

Although rates are rising, you can still get good coverage at a fair price. Independent brokers like McShea Insurance have access to specialty markets with broader capacity. These markets offer fewer restrictions and more flexibility than many state-regulated options. During this volatile time in the industry, we use these markets to help clients secure reliable coverage. Then, we pair that with our advocacy at claim time. When a storm hits, you need more than a policy. You need a partner.