Insurance: Will I be Covered?

Q: "I have heard that it is difficult to get insurance on the Outer Cape. How will this affect me in my search for a property and the ability to get financing?"

A: It is true that in recent years, and especially since Katrina, many large insurers have pulled out of Cape Cod and other coastal markets based upon the great potential risk of a hurricane. But don’t worry, you will be able to get insurance (and therefore financing) and depending upon what type of property you are buying, it may not be a concern for you at all. 

For example, if you are purchasing a condominium, insurance will already be secured for the property, and you will be paying your share through the monthly condo fees. Insurance policies for condominiums cover you for most damage to the building(s) and allow for rebuilding after a catastrophe. We recommend that you take out an additional policy to cover the interior of your unit and your contents.

If you are purchasing a single-family home, first try the local insurance companies to secure coverage. If there are no private insurers that will take your property on, you are guaranteed coverage through the Massachusetts FAIR Plan, which is a legislatively created program to provide coverage for those who cannot secure private insurance. Our local insurance agents (call us for recommendations!) can guide you through the process with the FAIR Plan. 

One note to property owners, whether you are in a condo or a single family. Discuss flood insurance with your insurance agent. If a property is not located in a flood plain, you are not required to carry this type of insurance. But being so close to the water, it is not a bad idea to opt for additional coverage. If you are in a condo, bring it up at your annual meeting.