Investing in Oceanfront Condos: Insurance Costs and Risks

🌊Insurance costs for oceanfront condos in Myrtle Beach have risen significantly, with some HOAs experiencing increases of up to 50%.

💰HOAs with inadequate reserves are issuing special assessments to cover the insurance cost increases.

📈Some condo complexes, like Compass Cove, have seen minimal increases in HOA dues, while others, like Edgewater, have experienced substantial rises.

🏢Condo complexes like West Wind have implemented alternative measures, such as removing certain coverages, to reduce insurance expenses.

🏖️Buyers interested in oceanfront condos should consider the impact of insurance cost increases and HOA dues on their investment profitability.

Why are insurance costs increasing for oceanfront condos?

—Insurance costs for oceanfront condos are increasing due to rising risks associated with climate change and severe weather events, as well as increased construction and replacement costs.

How do insurance cost increases affect HOA dues?

—Insurance cost increases can lead to higher HOA dues for condo owners, as HOAs need to cover the additional expenses. In some cases, special assessments may also be implemented to supplement the HOA funds.

Which condo complexes have been most impacted by insurance cost increases?

—Condo complexes like Edgewater in North Myrtle Beach have experienced significant rises in insurance costs, resulting in substantial increases in HOA dues. Other complexes, like Compass Cove, have seen minimal impacts on HOA dues.

What measures are condo complexes taking to reduce insurance expenses?

—Some condo complexes are removing certain coverages from their insurance policies to reduce expenses. However, this may impact the level of protection for condo owners.

How should buyers consider the impact of insurance costs and HOA dues on their investment profitability?

—Buyers interested in oceanfront condos should consult with a professional agent to understand if the HOA has already increased dues or plans to issue special assessments due to insurance cost increases. This information is crucial for assessing the potential profitability of the investment.

00:00In this video, we discuss the rising insurance costs and risks associated with investing in oceanfront condos in Myrtle Beach, South Carolina.

01:12Insurance costs for oceanfront condos have risen as much as 30 to 50%, leading to increases in HOA dues and special assessments.

01:46Condo complexes like Edgewater have experienced substantial rises in insurance costs, resulting in significant increases in HOA dues.

02:45Some condo complexes, such as West Wind, have implemented alternative measures, like removing certain coverages, to reduce overall insurance expenses.

03:30Buyers interested in oceanfront condos should consider the impact of insurance cost increases and HOA dues on their investment profitability.

04:38There is a unit available at the Meridian in Myrtle Beach, projected to have a profitability of $1,814.73. Buyers should consult with an agent to assess the investment potential.

05:30The numbers and expenses associated with the unit's projected profitability are discussed, including gross rental income, taxes, insurance, and HOA dues.

06:41Viewers are encouraged to like, subscribe, and share the video, while also reaching out for personalized assistance in investing in oceanfront condos.