Coverage for structures located on or near coastlines against damage caused by rising water levels is a specialized type of policy. For example, a homeowner residing near the ocean might purchase such a policy to protect their investment from storm surges or other flood-related events. This type of coverage differs significantly from standard homeowner’s insurance, which typically excludes flood-related damages.
Given the inherent risks associated with coastal living, obtaining specialized protection against flood damage is a critical consideration for property owners. Historically, coastal areas have been vulnerable to the devastating effects of floods, and the frequency and severity of these events are projected to increase due to climate change. Protecting one’s financial investment with this specialized insurance can provide peace of mind and crucial financial support in the aftermath of a flood event. It can also be a requirement for obtaining a mortgage on a property located in a high-risk flood zone.