Beachfront real estate is some of the most expensive and also sought-after real estate in the United States. Owning and maintaining a beachfront property requires many special considerations for one, insurance premiums for such a property skyrocket. Flood insurance is mandatory for beachfront properties. These properties come with higher tax rates and also higher management costs. In addition, beachfront properties can be more susceptible to wind damage.
There are plenty of oceanfront properties to choose from. However, finding and buying an oceanfront home is not necessarily a hassle. Investigating the feasibility and the return on investment can be more challenging as it requires a lot of research and house hunting.
While beachfront or bluff property values do not yet reflect the risks of climate change, increasingly severe storms, rapid sea-level rise, frequent flooding, and the possibility of future chronic and disruptive flooding due to changes in weather patterns pose serious risks.
A 2018 study by the Union of Concerned Scientists, a U.S.-based nonprofit scientific organization, shows that more than 300,000 coastal homes in the U.S., now worth a total of $117.5 billion, are at risk of chronic flooding by 2045. In addition, according to the 2017 Climate Special Science Report, sea levels have risen eight inches since 1900 and are projected to grow another seven inches by 2030. In addition, Climate.gov, stated that in 2020, global sea level has reached a new record high of 91.3 mm (3.6 inches) above the 1993 sea levels and it continues to rise.
If you consider buying an oceanfront or bluff property, it's essential to do your research to protect your future investment. Here are five factors to consider and review before you commit to buying.
Consult with professionals
Hiring professionals who can help identify potential or future hazards on a property is a crucial step. A licensed engineer, land surveyor, and geological inspector will be able to assess what, if any, hazards on a property may pose a risk to you or your investment. In addition, mitigating factors can help protect property.
Insurance policy
It's essential to understand your homeowners' insurance policy and read the fine print. Buying homeowner's insurance in South Carolina may look quite different than buying it for a home directly on the coastline of South Carolina. Look for gaps and exclusions in the policy, as some damage caused by flooding may not be covered. Insurance rates are determined by current risk factors, not future risk factors. Therefore, flood insurance rates may change if risk factors vary. Given rising sea levels and changing weather patterns, insurance policies may be affected by climate change in the future.
Evaluate previous insurance claims
A standard comprehensive home inspection should reveal previous storm damage to the home. Properties on the beach and bluffs are vulnerable to landslides, wind and water damage from storms, and bluff collapse, among other hazards. Previous insurance claims can provide a wealth of information about what damage the home has suffered in the past from dangerous weather conditions. A real estate agent should be able to obtain this information for you.
Owning beachfront or bluff top property can be a great investment. It is important to do your research thoroughly before buying. Climate change is an inevitable part of the future that can negatively impact beachfront and bluff top properties, among others. However, if you take mitigation measures, you can reduce the risk of damage to your property.
* This is a contributed article and this content does not necessarily represent the views of sciencetimes.com
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