THE ULTIMATE LBI BUYER’S GUIDE
Everything You Need to Know About Buying a Home on Long Beach Island
Building in the V Flood Zones
“V” flood zones on Long Beach Island are considered higher risk, resulting in more expensive flood insurance and stricter building regulations. Homes in these areas must be elevated on pilings with breakaway walls and avoid enclosures below the structure to minimize flood damage. Building above the Base Flood Elevation (BFE) can significantly reduce insurance costs. For example, a home built 3 feet above BFE could save nearly $6,800 per year in flood insurance. When building in a “V” zone, working with a knowledgeable contractor is essential to account for added costs and ensure compliance with LBI regulations.
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A "V" flood zone on Long Beach Island is considered to be an area of higher risk. Therefore, flood insurance rates tend to be higher in a "V" zone than in an "A" or "X" zone. Building restrictions and additional construction methods are recommended to safeguard the house and surrounding area. Understanding how new construction in a "V" zone on Long Beach Island NJ is handled and its impact on the LBI real estate market is essential. In short, homes in the V zone must be built higher, with breakaway walls, and to achieve the best rate, built without enclosures below the structure. When building in an "A" or "V" flood zone, both FEMA and the towns on LBI have established a minimum required height, often known as the BFE (Base Flood Elevation). Building higher than the BFE should lower the flood insurance premium on LBI and future flood risk. FEMA offers a helpful example to demonstrate that by building higher, the flood insurance rate (premium) on Long Beach Island will drop significantly
A single-story home built on wood pilings in a "V" flood zone built to BFE (base flood elevation) would have a monthly premium of roughly $878/ month.
A single-story home built on wood pilings in a "VE" flood zone built 3 feet ABOVE BFE (base flood elevation) would have an estimated monthly premium of only $315/ month!
This is a savings of almost $6,800/ year on flood insurance on Long Beach Island, NJ!
The above is only an example, and every home must be evaluated to determine the actual insurance cost.
Building in the V zone on Long Beach Island shares much in common with the rest of the area. Understanding the differences before embarking on the building process and discussing them with your contractor is helpful in accounting for any potential costs or delays.