Buying a Home Near a Military Base: Insurance Considerations

Eager to purchase a home but need to remain near your military base? Active-duty service members deserve their chance to own a piece of the American dream. But finding and managing the right property can be a bit trickier when your geographical boundaries are limited. In fact, buying within your duty station area can present hidden risks and extra costs, especially when it comes to insurance coverage.

Finding reliable homeowners insurance near bases can be a challenge. Many carriers view certain areas as high-risk home insurance locations due to environmental factors or local crime statistics. When navigating PCS home buying insurance, it’s vital to research the specific insurance risks in military housing areas to ensure your new property is fully covered against unique regional threats. Read on to learn more about home insurance military base matters you should consider carefully.

Why Location Matters More Than You Think

Ask Janet Ruiz, director of Strategic Communications for the Insurance Information Institute, and she’ll tell you that location is one of the biggest drivers of homeowners insurance costs and availability.

“That’s because it determines exposure to natural disasters, local building costs, and claim frequency,” Ruiz said in an interview with TMW. “Even within the same region, proximity to wildfire zones, flood plains, or coastal areas can significantly affect premiums and coverage requirements.”

Haydn Sessions, agent and owner of Sessions Insurance in Ogden, Utah, says military families need to ask themselves these questions:

“Will you be near a big city?”

“What is the crime rate like?” 

“Will you be in a rural area prone to fires?”

Military families must also consider median home values within military base host cities.

“Home values can run from $171,900 in Fayetteville, North Carolina, near Fort Liberty [re-renamed Fort Bragg], to $848,500 in San Diego, near Naval Base San Diego,” said Thomas Rewwer, founder of AmericaByNumbers.com, an independent US economic-data publisher. 

“A military family involved in a Permanent Change of Station (PCS) from one base to another isn’t just changing addresses: They are significantly repricing every dollar of dwelling insurance coverage.”

Common Risks Near Military Bases

Let’s take a closer look at different areas around the country where duty station location can increase your insurance risks and costs.

Coastal Bases

Storm surges, mold, and mandatory flood insurance are among the factors you need to consider before purchasing a home in a coastal area. 

“In coastal states, where flooding is common, your mortgage company may require you to carry a separate flood policy, which can be very expensive,” said Lauren McKenzie, a senior insurance agent with A Plus Insurance in Sierra Vista, Arizona. “Or, your home may be in an area that is uninsurable, and you will be forced to choose a policy with a high-risk company.” 

Coastal bases near cities like Jacksonville or Pensacola, Florida, and Norfolk, Virginia, or layer hurricane risk on top of everything else.

“Wind damage, storm surges, and flooding are each covered differently by insurers. Wind is covered in most standard homeowners policies, but flood requires a separate policy through the National Flood Insurance Program or a private insurer,” said personal finance expert Andrew Lokenauth.

Western Bases

Homes near bases in western states, like California, are vulnerable to wildfires, earthquakes, drought-related soil instability, and rebuilding cost inflation.

“In heavily forested areas or rural areas, wildfires pose a huge risk, making home insurance expensive and sometimes selective,” said McKenzie.

Standard homeowners’ policies may cover fire damage. But in high-risk wildfire zones, carriers are often pulling out or raising premiums to levels that homeowners cannot afford.

“Some homeowners near California bases have had their policies non-renewed with almost no warning,” said Lokenauth.

Sessions recommends looking up the area’s fire score via sites like Redfin. Scores typically range from one to 10, with higher numbers indicating greater risk. Other risk assessments can be found by visiting the U.S. Fire Administration’s website, a division of FEMA. These resources can help you determine your risk and the affordability of insurance.

Southern Bases

Some of the same threats that impact homebuyers in coastal states also affect areas in the South. These risks include hurricanes, severe convective storms, flooding, and mold. 

“Bases in Louisiana, Mississippi, and the Carolinas, for example, sit in areas that commonly flood,” said Lokenauth. He adds that the cost can run into the thousands. “If your policy doesn’t cover mold, you have to absorb that cost yourself.”

How These Risks Affect Insurance Costs

All of these factors can make insurance difficult to obtain, limiting your choices for coverage and cost.

“Higher exposure to disasters like these increases expected losses for insurers, which can lead to higher premiums, larger deductibles, reduced coverage options, or the need to secure coverage from specialty or residual market insurers,” said Ruiz.

A home that initially appears affordable can quickly become unaffordable after adding homeowners insurance premiums in higher-risk areas. This should give military families pause when buying a home.

“That’s why it’s essential that buyers get several different insurance quotes prior to removing any contingencies in a real estate contract,” said attorney Nick Heimlich.

What Coverage You May Need

Standard homeowners’ policies typically cover fire, theft, liability, and wind damage in some cases, but gaps exist. In Florida, for example, many policies exclude windstorms according to Novatae Risk Group. Homeowners’ policies generally exclude other major perils as well. That’s why homebuyers near military bases may also need separate:

• Flood insurance
• Windstorm or hurricane deductibles/endorsements
• Earthquake coverage
• Extended replacement cost coverage to account for rebuilding inflation

“Other optional coverages and separate policies can include water backup coverage and increased mold coverage,” said McKenzie.

Also, if you plan to purchase in a wildfire zone, ask your insurance agent if your policy will cover debris removal, which can run tens of thousands after a fire.

But natural disasters are not the only factors that may impact cost. Military families who elect to rent out their home will have additional considerations.

Whatever your reason for moving, whether it’s a PCS or another life change, renting out your home can affect your homeowners insurance coverage. Standard homeowners policies often limit or exclude coverage once tenants occupy the property long-term. So, you may need a landlord insurance policy to ensure you are properly protected.

Lastly, consider adding an umbrella insurance policy, which offers an extra layer of liability coverage that kicks in after the limits of your standard homeowners’ insurance are applied. Umbrella insurance provides broad coverage for major claims, including catastrophic accidents and libel, protecting you and your personal assets from costly litigation. 

PCS Considerations for Homeowners

A PCS move can affect insurance needs due to differences in risk exposure, state regulations, and housing type (off-installation versus on-installation).

“It’s important to reassess your coverage limits, update policies promptly, and ensure there are no gaps during the PCS transition,” said Ruiz.

If you are moving out but your property is vacant while you wait for a buyer or renter, your standard homeowners insurance policy may not cover the home. Most carriers limit coverage on vacant homes after 30 to 60 days. Consequently, you may need a vacant home policy or a landlord policy, depending on your situation.

“If you are renting out your home during a PCS, your rental income is now a financial asset worth protecting. Landlord insurance will cover property damage and liability when tenants are in the home, and it’s a separate policy from standard homeowners coverage,” said Lokenauth. “Don’t assume your existing coverage will carry over. Call your agent or carrier the moment your orders come through, and fully understand what changes in your policy.”

Questions to Ask Before Buying

To safeguard your interests and protect against financial losses, it’s crucial to ask key insurance-related questions before purchasing a home near a military base, such as:

• What are the area’s primary weather or catastrophe risks?
• Will I need separate policies for threats like flood, earthquake, mold, wildfires, etc.?
• How have insurance costs changed in this zip code recently?
• What is the claims history of the property (via a CLUE report)?
• Are there restrictions on renting or short-term leasing if I am reassigned?
• Are insurers actively writing new policies in this market?
• How close is this home to a fire station?
• What options do I have for deductibles in terms of wind/hail and hurricanes?
• What additional endorsements will I need to keep me covered, and how much will those extra costs be?

“The more you ask before closing, the fewer surprises you will face later,” said Lokenauth. “Get an insurance cost estimate before you close, and ask your agent whether the area is losing insurers. In some high-risk markets, your choices may already be narrow.”

Luckily, there are military-focused insurers who want to be the coverage of choice for military families, but that doesn’t mean costs will be as low in high-risk areas.

The Bottom Line

When you are planning to purchase a home near a military base, don’t leave anything to chance, especially when it comes to homeowners insurance. Take the time to thoroughly investigate what will and won’t be covered, your expected costs and deductibles, and different risks that can leave you vulnerable.