What is the Cost of Flood Insurance for an Elevated Home on Long Beach Island
Flood Insurance and Long Beach Island Real Estate
When Hurricane Sandy made landfall in New Jersey at the end of October 2012, many things changed. Large areas of coastal New Jersey, including Long Beach Island, were damaged, and that damage has taken a long time to repair. Thankfully, most of the shore areas were open for Summer 2013 and Summer 2014 is looking to be a very busy season. One positive impact of Hurricane Sandy is the amount of redevelopment and improvement being made to all the shore towns in New Jersey. With new construction taking place seemingly on every street and many older homes being raised, many home buyers in the LBI real estate market have been asking what is the cost of flood insurance for an elevated home on Long Beach Island.
Long Beach Island Real Estate Flood Insurance Costs
Before we can discuss the insurance costs for an elevated home, we must first understand what determines the cost of flood insurance on Long Beach Island. Flood insurance is based on several factors, the most important of which is the elevation of the property. Contrary to the general opinion, not all homes need to be raised to avoid high insurance costs. The elevation of a property is determined by combining the natural ground elevation with the foundation of the building. With most ground elevations on LBI being no lower than 3-4 feet, most homes on Long Beach Island are only about 1-2 feet below the base flood elevation AT WORST. An elevated home, meaning a home that is built high on pilings or on an extended block foundation, will see far less expensive flood insurance rates than a house at or below base flood elevation. The flood insurance cost for an elevated home on Long Beach Island will depend on the following:
- The height above base flood elevation
- The number of flood vents in the foundation
- The flood zone
Most properties will see their best insurance rate 3 or 4 feet above base flood elevation. By building to the maximum height allowed, not only does the risk of damage to the property diminish, so too do the costs of insurance. The number of flood vents in the foundation also plays a significant role. There was recently a home for sale on Long Beach Island built well above the base flood elevation, however it had no flood vents. The insurance premium for this particular property was roughly $2,600/ year. If the proper number of flood vents were installed, that premium would drop to only $600/ year! Lastly, the flood zone plays a role. Most of Long Beach Island is in an “A” flood zone. A property in a “V” flood zone will see a higher insurance rate as V zone properties are considered to be more risky. The good news is, V zones are primarily located along the oceanfront and parts of the bay front so for most buyers in the LBI real estate market, this will not be a major issue.
If all the conditions are met, meaning a house is elevated above base flood elevation, has the proper number of flood vents and is located in an A zone, the insurance rate for the year should only be in the $400-$600 range. Of course every situation is different and the only way to tell for certain what the cost of flood insurance in the LBI real estate market will be is with an elevation certificate. Regardless, the cost of insurance for an elevated house on Long Beach Island should be VERY affordable! For more information about flood insurance or the real estate market on Long Beach Island, feel free to contact me and I will be happy to answer any questions you have!
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org