Long Beach Island Real Estate and the National Flood Insurance Program
The NFIP is an acronym for national flood insurance program and is an essential step when considering an investment in the Long Beach Island real estate market. This program was designed to regulate flood insurance throughout the United States. Since the program came into inception, and especially recently, it has been faced with mounting debt totaling billions of dollars owed to the United States treasury. Much of this has to do with poor planning, flood zones, and worsening storms. It is important that all buyers understand flood insurance and the NFIP program before investing in the Long Beach Island real estate market. The NFIP and Long Beach Island real estate for intimately related and can have a great impact on home prices.
NFIP and Long Beach Island Real Estate
Due to recent reforms, most notably in 2012 and 2014, the NFIP has sought to correct some of the issues that have plagued it. Specifically, one major design flaw in the program had to do with pre-firm housing. Essentially a pre-firm house falls under a blanket flood insurance rate regardless of the risk level associated with it. The problem is, these older homes are usually the least compliant and most at risk of flooding. Therefore, the program was spending far more money than it was taking in which has led to the substantial debt. Now, through recent reforms, homes are evaluated at their actual risk level which will certainly help the programs sustainability. The introduction of private flood insurance markets have driven some consumers away from the NFIP, especially those who are paying more for flood insurance, but regardless the steps of been taken so far seem to be in the right direction. Flood insurance is a key component to the LBI real estate market and the importance of understanding this topic cannot be overstated. For more information about NFIP and Long Beach Island Real Estate or about the LBI sales market, please do not hesitate to contact me.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org
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