THE ULTIMATE LBI BUYER’S GUIDE
Everything You Need to Know About Buying a Home on Long Beach Island
Building in the A Flood Zones
FEMA defines “A” and “AE” flood zones as areas with a 1% annual flood risk. On Long Beach Island, homes in these zones benefit from lower flood insurance rates and less restrictive building codes compared to “V” zones. With solid block foundations and flood vents allowed, these properties are often more attractive to buyers seeking lower ownership costs. Recent revisions to the flood insurance program and more private carriers have made coverage even more affordable on LBI.
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FEMA defines an "A" and "AE" flood zone as having a 1% chance of an annual flood (it is partly from this definition that the term "100 year storm" comes from when speaking of Hurricane Sandy and other weather related events). Homeowners in an "A" or "AE" flood zone on Long Beach Island can expect the following:
Flood insurance rates in an "A" or "AE" zone will be less expensive than a "V" zone.
Building codes will be less restrictive in an "A" or "AE" flood zone on LBI.
Breakaway wall foundations are typically not required (although they are recommended).
In the wake of Hurricane Sandy, the LBI real estate market has become very reactionary to flood zones and flood insurance. Due to FEMA's interpretation that flooding will be less destructive in an "A" or "AE" flood zone, flood insurance is less expensive than a "V" zone, and some buyers in the LBI real estate market will limit their search to these areas. For a property to be zoned a "V" zone on LBI, FEMA must ascertain that the subject property will sustain the direct impact of a 3-foot or higher wave. In the eyes of FEMA, properties on LBI in an "A" or "AE" flood zone do not share this risk (but they still are at risk of flooding). It is for this reason that homes in "A" and "AE" flood zones can usually be built on a solid block foundation with flood vents rather than the breakaway wall system required in a "V" zone. For some buyers, an "A" or "AE" flood zone on Long Beach Island will be more attractive in the real estate market. Many buyers are concerned with the potential for flood insurance rate increases and the impact these increases will have on the future value of the Long Beach Island real estate market. Overall, flood insurance is very affordable in the LBI real estate market, and the cost has not decreased property values on Long Beach Island. Recently, there have been revisions to the national flood insurance program, and the flood insurance market has expanded to include both public and private carriers. These efforts have made flood insurance more manageable and cost-effective.