Moving to the coast? Why home insurance can sometimes make that sea view a little less tempting

Although the property sector might not be the most buzzing market at the moment, homes which offer a little something extra, such as a cliff-top location, view down the estuary, or glimpse of the surf, are always going to be sought after – and more likely to be bought at a higher price than their view-less equivalents.

With many sources reporting that the market is on the turn, many who have long considered leaving the city, or buying a second home on the coast will now feel the pressure to start their hunt before prices increase too much.

A recent Halifax survey taken over 10 years between 1996 and 2006 found that house prices rose considerably quicker on the coast in comparison to those inland. Perhaps the best example for the difference was Falmouth on the south coast of Cornwall, where prices rose by 316 percent when the average across Britain was 186 percent.

It is no secret that the reason for the popularity, and the subsequent affect on house prices, comes from the views on offer at coastal properties. In an article at telegraph.co.uk, Graham Norwood writes about two properties in Cellardyke, Fife, one of which had views of the North Sea whilst the other had none. Of course, the former sold for far more at £400,000 compared to the latter at £195,000.

Perhaps surprisingly, properties that are located in picturesque coastal locations can sometimes mean certain considerations when it comes to such necessities as home insurance. Despite the often sparkling reputations of areas that are not urban in character, according to the Daily Mail, opportunist thefts have increased by as much as 63 percent in some rural areas – with extreme increases occurring in North Wales. Additionally, where buildings insurance is concerned, in some cases companies will refuse policies for buildings in particular risk from flooding, or at the least offer very expensive premiums.

In spite of the downsides (The Telegraph also mentions how damaging sea spray is to paintwork and subsequent maintenance costs), I anticipate that coastal areas will see the quickest rise in prices when (or if) the market settles into its climb. And, although this might be bad news for those who live on the UK’s coasts, with Sterling in such a bad position abroad I wouldn’t be surprised if second-home interest in Cornwall, Devon and Dorset increases quicker than we may have known it to before.