There is no question that the Jersey Shore holds a special allure for many people in this area. Whether it’s the feel of their toes in the sand, a favorite seafood restaurant or the hustle and bustle of the boardwalk, there is a reason they return to the coast year after year to create lasting memories.

For those fortunate enough to own a home at the beach, or those considering making the leap, those experiences are what stand out. But in order to protect such a major investment, especially in the wake of damaging storms like Hurricane Sandy, it is critical to have the proper insurance coverage.

That is where Groendyke Associates enters the picture. An independent insurance agent in Califon offering a wide array of services, Groendyke is a leader in providing coastal insurance for individuals and businesses up and down the Jersey Shore.

“I think it’s important to have an agent who specializes in coastal insurance for a variety of reasons that I have encountered in my almost 20 years in this industry,” says Matt Bonaventura, Groendyke’s vice president. “You need access to the appropriate insurance carriers that are  actively writing property insurance in coastal areas. There are also important nuances to coastal properties that require particular know-how.

 “Flood insurance is a big part of it. The market is always changing, so there’s a lot to know and it’s crucial to stay up to date.”

House & Home recently sat down with Bonaventura to pick his brain about the key issues in coastal insurance.  

Q: What can you tell us about the current trends in coastal insurance?
Matt Bonaventura: Believe it or not, after Hurricane Sandy we actually have seen more carriers enter the market to actively write insurance at the Jersey Shore. That surprises a lot of people because it was such a large event and I find that people assume carriers would be running the other way. But the opposite is true because carriers have analyzed the data to see what the losses and trends were, and now have the ability to discern how they want to set up their various underwriting guidelines and programs. That’s good news because it brings in competition. I’ve seen more options for coastal properties within the last five years than I have in all my other years of doing this.

Q: Since Sandy, is it now mandatory for coastal homeowners to raise their homes?
MB: I get this question a lot; many people think the National Flood Program is going to require them to raise their home, and that’s not true. The mandate to elevate your home typically comes by way of a local building ordinance or code. There is a large percentage of people who have elevated because they think there’s going to be insurance savings, and there is in some cases. But it’s a case-by-case basis.  

Q: What else is important to know about flood insurance?
MB: There’s a lot of misinformation out there. For a while after Sandy, there was a notion that flood insurance was now going to cost a minimum of $10,000 a year. That’s just not true across the board. Again, this is a case-by-case item,  and certain scenarios can produce higher premiums, but in general, we don’t see premiums like that. For example, on a relatively newer home that is elevated properly in a coastal area, the average premium is more in the $1,100 to $1,500 range per year.  It’s also important to understand that an agent with a proven track record can recommend ways to reduce the flood insurance premium. For example, people can decide not to insure the contents of their home if it can help save  some money, and maybe were not aware that this was an option. Also, higher deductibles can play a big role in managing premiums. There are also things people can do to their home, structurally speaking, like adding flood vents. I have seen measures like that cut the premium in half, although it’s a case-by-case basis and it doesn’t play out like that in every scenario.

Q: How do rental properties affect insurance?
MB: Making sure you have the proper protection for a property that you will be renting is very important. It’s about making sure your agent asks the right questions and obtains the appropriate  coverage for your situation. Whether it is rented on a weekly, seasonal or annual basis are all important considerations that need to be reviewed and addressed properly by your insurance program.

Q: How do different deductibles impact the policy?
MB: That’s something that’s really important in the coastal market and I’ve seen people get burned because they didn’t know about it. Particularly  in the coastal insurance market, homeowners need to be aware of hurricane deductibles, wind deductibles, named storm deductibles and the like. Even more important to know, is that homeowners have options that will not require you to be stuck with a very high, separate deductible for damage that is a result of wind or hurricane damage. Several carriers offer policies with one deductible, so there are no surprises at the time of a claim.

For more information, please contact:
Matt Bonaventura, CIC
Groendyke Associates
295 County Road 513 | Califon, N.J.
Office: (908) 439-6237 | Cell: (908) 472-0296
Matt@Groendyke.net | www.Groendyke.net

Published (and copyrighted) in House & Home, Volume 19, Issue 2 (August 2018). 
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