Homeowners Insurance & Natural Hazard Costs in Cape May

Cape May carries real, substantial coastal-storm and flood exposure -- Cape May County ranks among New Jersey's three highest-risk counties by NFIP policy count and claims.

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A real, top-tier NJ flood-risk county

Cape May County is one of New Jersey's three highest counties for both NFIP flood-insurance policy count and claims activity (with Ocean and Monmouth counties) -- a real, substantial, current exposure.

Coastal flood insurance is a real, material cost

Flood insurance for coastal Zone VE properties here can exceed $6,000/year, well above the sub-$400/year cost typical of inland NJ Zone X communities. Standard homeowners policies do NOT cover flood damage -- a separate NFIP or private policy is required.

Hurricane Sandy's legacy remains real and current

Hurricane Sandy (2012) caused $6.3 billion in insured losses statewide with over 55,000 flood claims -- the same defining reference event documented across New Jersey's Shore towns, directly relevant to Cape May's own exposure.

Key takeaways

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Last reviewed: 2026-08-25. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.