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Palm Beach Island Home and Condo Insurance, Reviewed

By Harvey Wexelman

Answer paragraph

Palm Beach is a narrow island between the ocean and Lake Worth Lagoon, so Harvey Wexelman, Harvey the Insurance Broker, reviews island homes and oceanfront condos with four questions: what your hurricane deductible is in real dollars, whether you need extra flood coverage on top of the $250,000 building cap from the federal flood program (NFIP), whether your roof and wind mitigation paperwork are current, and how docks, boats and your umbrella line up.

What's different on the island

  • Flood on both sides. The island sits between the Atlantic and Lake Worth Lagoon (S17), so oceanfront and lagoon-side homes can both face flood risk. Check your FEMA zone at the map center (S2). VE zones are where waves and fast-moving water can do the most damage; AE zones flood with waves under 3 feet (S3). On a big rebuild, extra flood coverage on top of the federal policy can help with the rest, if an insurer will offer it for your home (S1).
  • Hurricane deductible. For homes with dwelling limits of $1 million to $3 million, insurers may offer 3% in place of 2%, and at $3 million and up they need not offer 2% at all (S4). Your declarations page must show the deductible in dollars (S4).
  • Citizens is usually not the backstop here. Homes with a dwelling replacement cost of $700,000 or more are generally not eligible for Citizens (S9), so many island homes need a private insurer.
  • Docks and boats. Docks and lifts might not be fully covered by a standard home policy, and a boat usually needs its own boat policy, since a home policy might not cover liability from a boat at a dock or mooring (S18). We also check that your umbrella sits on top of your boat liability.
  • Oceanfront condos. Buildings three stories or taller face milestone inspections and structural reserve studies (S10, S12), which can lead to special assessments. Check your unit policy's loss assessment limit (S13).

FAQs

Can I get Citizens on a Palm Beach house? Usually not if the dwelling replacement cost is $700,000 or more (S9). Below that, if a private insurer offers comparable coverage at no more than 20% above the Citizens premium, you generally aren't eligible, at purchase or at renewal (S8).

What hurricane deductible will I see on a large home? Often a percentage of your dwelling limit. On homes insured for $3 million or more, insurers don't have to offer a 2% option, so you may be choosing among 5%, 10% or other options the insurer offers. We turn each one into dollars before storm season (S4).

Is the federal flood program (NFIP) enough for an island house? NFIP covers up to $250,000 on the building and $100,000 on contents (S1). If your rebuild runs higher, extra flood coverage may help close the gap, if an insurer will write your home. We can price both.

CTA

Send us your declarations page and we'll tell you what your island house is really carrying. Book a 15-minute check-in: https://calendly.com/harveytheinsurancebroker/ask-harvey-15-minute-check-in or email harvey@harveytheinsurancebroker.com. Educational only. Coverage depends on the carrier, policy and underwriting.