If you’re dreaming of white sands, pristine blue waters, and a beachfront property to call your own, you aren’t the only one. Owning a beach home is, perhaps, the absolute statement of class, wealth, and prosperity. If you own a beach home, there’s no denying that you’ve made it. And between the jet skis, pools overlooking the ocean, and stunning sunsets, there isn’t a thing in the world that can get you down.
Well, except for the weather.
Regardless of your beliefs regarding global warming, there’s no denying the fact that our climate is changing. A season that’s being dramatically affected? Hurricane season. Whether you’re in the Florida panhandle or on the South Carolina coast, hurricane season is getting longer, the storms are getting more intense, and the damage they leave is both vast and devastating. And if you own your own beach home, there’s no gentle way of putting it: you’re in the crosshairs. If you get hit, you’re going to get hit hard.
2017 was a record year for both hurricane frequency and the damage those storms caused. In that single year alone, 16 separate climate events caused more than a billion dollars of damage each. The total climate damage for 2017? Over $300 billion. The cost of an average hurricane? $21.6 billion.
2005’s hurricane Katrina remains the most expensive and deadly storm in United States history, but 2017’s Harvey and Maria aren’t far behind. And just recently, we saw the impacts of both Florence and Michael, which left thousands flooded out of their homes, if their homes remained standing at all.
All of this is bad news for beachfront property owners. Sure, the appeal is still there, because what are the odds? Unfortunately, the odds are stacked against those who—rather than having a nice vacation at a beach resort—want to own a piece of paradise for themselves. Because regardless of the chances that your property will be hit, insurance companies don’t gamble. On top of the cost of the property itself, you should add in approximately $10,000 for insurance coverage per year if you’re in a hurricane zone.
But don’t give up your dreams of the piña coladas and teak loungers just yet. There’s still a way to own your own place along the coast of your dreams and not break the bank. Because what if you weren’t the sole owner? What if you could split the cost of insurance, the cost of the property itself, the cost of damages if a destructive storm does come through the area with seven other shareholders? If you own a share of a Lifestyle Asset Group home that’s exactly the scenario you’d be looking at.
Rather than paying $10k in insurance premiums per year on your own, you’d split the cost with all the property shareholders. Now, insurance premiums would set you back a whopping $1,650 per year. And if the next Katrina, Florence, or Michael barrels through your neck of the beach, you’d easily cover your insurance deductible which, in hurricane zones, can run up to $25k per incident. Between eight shareholders, that comes out to $3,152 each.
The fact of the matter is, beachfront property ownership is going to become riskier. But that doesn’t mean you have to let go of your dreams of a tropical paradise. You simply have to approach it from a different angle, and Lifestyle Asset Group is that angle.
As a shareholder of a Lifestyle Asset Group property, you can enjoy your beachfront home with an icy drink in one hand and not a financial worry in the world.
Now that’s paradise.