Living in Manasquan means you're part of one of New Jersey's most desirable shore communities—beautiful beaches, the Manasquan River inlet, and that classic Jersey Shore lifestyle. But here's what many new homeowners don't realize until it's too late: your standard homeowners insurance policy won't protect you from the biggest threat facing properties in this area. With over 90% of Manasquan located in flood zones and recent events like Hurricane Erin in August 2025 and the devastating October 2025 nor'easter proving these risks are very real, understanding home insurance coverage here isn't just smart—it's essential.
The truth is that insuring a home in Manasquan requires a different approach than insuring a property inland. Between the Atlantic Ocean, Manasquan River, Watson's Creek, Glimmer Glass Harbor, and Stockton Lake, water surrounds you from almost every direction. That geography shapes everything about your insurance needs, from what coverage you must have to how much you'll pay for it.
Why Standard Homeowners Insurance Isn't Enough
Your standard homeowners insurance policy covers plenty of important scenarios—fire, theft, wind damage to your roof, liability if someone gets hurt on your property. But there's one massive exclusion that catches coastal homeowners off guard: flood damage. If water enters your home from the ground level up—whether from storm surge, heavy rain, or river overflow—your homeowners policy won't pay a dime to fix it.
This distinction matters enormously in Manasquan. When the October 2025 nor'easter hit, water covered streets and threatened homes throughout the borough. During high tide events, areas near the Glimmer Glass Bridge and East Main Street regularly experience flooding. Stockton Lake has been known to completely flood the Coastal Evacuation Route. These scenarios all involve rising water—the exact type of damage your homeowners policy excludes.
That's why flood insurance exists as a completely separate policy. Most Manasquan homeowners purchase flood coverage through the National Flood Insurance Program (NFIP), which offers up to $250,000 in coverage for your home's structure and $100,000 for personal belongings. In New Jersey, flood insurance costs an average of $1,011 annually, though your actual rate depends on your specific flood zone, your home's elevation, and other risk factors.
The Real Costs of Insuring a Coastal Home
While the New Jersey state average for homeowners insurance sits around $1,200 to $1,771 annually, coastal properties tell a different story. If you're living within 1,500 feet of the coastline, you're looking at significantly higher premiums—often exceeding $2,000 per year. The closer you are to the water, the more you'll pay.
And it's not just about distance. Your insurance company has probably made some changes since Hurricane Sandy reshaped the shore insurance landscape in 2012. Many carriers now require elevation certificates before they'll even quote your property. If your home sits below the Base Flood Elevation established by FEMA's flood maps, expect your rates to climb even higher. Some insurers have simply stopped writing new policies for certain coastal areas altogether—three New Jersey counties, including nearby Cape May and Atlantic, ranked in the top 100 nationwide for the biggest increases in non-renewal rates between 2018 and 2023.
Then there's the hurricane deductible. Unlike your standard deductible, which might be $1,000 or $2,500, hurricane deductibles in coastal New Jersey are typically percentage-based—usually between 2% and 5% of your dwelling coverage amount. If your home is insured for $400,000 and you have a 5% hurricane deductible, you're responsible for the first $20,000 of covered damage before your insurance kicks in. That's a substantial out-of-pocket expense if a major storm hits.
Understanding Your Flood Risk and Requirements
Flood insurance isn't legally required in New Jersey—but that's a technicality that doesn't tell the whole story. If you have a mortgage and your home sits in a Special Flood Hazard Area (SFHA), which means at least a 1% annual chance of flooding, your lender will absolutely require flood coverage. Given that more than 90% of Manasquan falls into some type of flood zone, most homeowners here aren't buying flood insurance because they want to—they're buying it because they have to.
But here's what trips people up: timing. NFIP policies have a 30-day waiting period before coverage starts. You can't watch the Weather Channel track a hurricane heading for the Jersey Shore and then buy flood insurance. By the time the storm arrives, you're still weeks away from being covered. This is why insurance agents in Manasquan preach the same message: buy flood insurance before you need it, because once you need it, it's too late.
The borough itself recognizes these risks and has implemented flood monitoring and forecasting systems to give residents advance warning. Manasquan's Office of Emergency Management actively tracks tide levels at Watson Creek, the Manasquan River at Squankum, and other critical waterways. But all the monitoring in the world doesn't help if you don't have the right insurance coverage when water starts rising.
Climate Change Is Making This More Urgent
In November 2025, the New Jersey Climate Change Resource Center at Rutgers University released a sobering report: sea-level rise is accelerating along the Jersey Shore, and flood hazards are rapidly increasing. This isn't a theoretical future problem—it's happening right now. Hurricane Erin in August 2025 sent massive waves crashing against the rocks at Manasquan Inlet Beach. The October 2025 nor'easter put all 21 New Jersey counties under a statewide emergency declaration due to threats of major coastal flooding.
What this means for your insurance is simple: rates are going to keep climbing. As flood risks increase, insurers adjust their pricing models accordingly. Some are pulling back from coastal markets entirely. Others are raising rates and tightening underwriting standards. The coverage you can buy today might not be available—or affordable—in five years. This creates a strange reality where procrastinating on flood insurance can cost you in multiple ways: you're unprotected against current risks, and you might lose access to reasonable rates before you finally decide to buy.
Practical Steps to Protect Your Manasquan Home
Start by finding out your exact flood zone designation. You can check FEMA's flood map service or contact the Manasquan Construction Department, which maintains detailed flood information for the borough. Knowing whether you're in an AE zone, VE zone, or X zone will tell you how much flood risk you face and what your insurance requirements might be.
Next, get quotes for both homeowners and flood insurance from multiple sources. Don't just accept the first quote you receive. Rates can vary significantly between carriers, especially for coastal properties. Some companies specialize in shore properties and may offer more competitive pricing than general market insurers. For flood insurance, compare NFIP policies with private flood insurance options—private market flood policies sometimes offer higher coverage limits and additional features the NFIP doesn't provide.
Consider mitigation measures that can lower your premiums. Elevating your home above base flood elevation, installing flood vents in your foundation, or adding hurricane shutters can all reduce your insurance costs over time. Yes, these upgrades require upfront investment, but they also increase your home's value and resilience while potentially saving you thousands in insurance premiums over the years.
Finally, review your coverage annually. Your insurance needs change as your property value increases, as you make home improvements, and as flood maps get updated. New Jersey implemented a Flood Risk Notification law in 2024 requiring disclosure of flood risks in real estate transactions, and the state plans to enact additional coastal flood regulations in late 2025. Staying informed about these changes helps you maintain adequate protection without overpaying for coverage you don't need.
Insuring a home in Manasquan comes with unique challenges, but it's not impossible to navigate. The key is understanding that you need two separate policies—homeowners insurance for wind, fire, and liability, plus flood insurance for rising water—and that coastal location means higher costs for both. With the right coverage in place before disaster strikes, you can enjoy everything that makes Manasquan special without lying awake at night worrying about the next nor'easter. Get your insurance sorted now, while you have time to shop around and make informed decisions, because when the next storm warning goes up, it'll already be too late.
