Nathan Colmer | Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Nathan Colmer | Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
When buying a home in the LBI real estate market, flood insurance is a subject that all buyers and investors in the LBI real estate market should understand. Since Hurricane Sandy, flooding and the cost of flood insurance are in the forefront of nearly every buyer and seller’s mind on Long Beach Island. Recently, FEMA has implemented changes that have rewritten the way a flood insurance policy is rated. At a minimum, all buyers should understand how a flood policy is rated, the different flood zones on Long Beach Island, the costs of flood insurance, and what flood insurance covers.
In many ways, Hurricane Sandy helped to safeguard Long Beach Island against future storms. There have been three major improvements to Long Beach Island since Hurricane Sandy. They are:
Beach replenishment was already underway before Hurricane Sandy made landfall. This process involves taking sand from the ocean floor and depositing it on the beaches. Beach replenishment creates an extensive and sound dune system with a broader beach that can better absorb the impact of a storm. New building codes and extensive renovations on Long Beach Island have made the area more storm-ready. Thanks to flood insurance assistance, many homes that were previously at risk for flooding have been raised well above the base flood elevations. In the event of another storm impacting Long Beach Island, these homes should experienced little to no damage. Lastly, the bayfront areas have seen recent code changes that require bulkhead heights to be raised. This creates a "sea wall" that will help with bayside flooding.
There are a number of factors that must be considered when buying a home in the LBI real estate market. Flood insurance is indeed a cost that must be taken into account. The only way to determine the true cost of flood insurance is to obtain an elevation certificate and obtain a quote for the cost based on the rating.
Understanding the flood zones on LBI can have a significant impact when buying a home in the LBI real estate market as it can have a considerable impact on the cost of flood insurance. Homes with a high cost of flood insurance will be worth much less in the LBI real estate market than a home that meets or exceeds current regulations. Therefore, understanding the current flood policy can directly impact the price you should or should not pay for a house.
Since Hurricane Sandy made landfall at the end of October 2012, flooding and Long Beach Island real estate flood insurance costs have been important topics for both buyers and sellers to understand. While Long Beach Island has made a miraculous recovery since Hurricane Sandy’s impact, many buyers and sellers still lack an understanding of Long Beach Island flood insurance costs. They need to be informed so they may make wise decisions when buying or selling a home in the LBI real estate market.
When buying a home in the LBI real estate market, it is important to understand how a flood insurance policy is rated and what is covered by flood insurance. Long Beach Island flood insurance coverage limits are an essential step to protecting your investment in the LBI real estate market.
Since Hurricane Sandy, which made landfall at the end of October 2012, tremendous focus has been placed on flood insurance. While it is true that flood insurance can be an expensive bill, the reality is that most homes on Long Beach Island meet or exceed the current base flood elevation requirements. In many cases, homeowners insurance is the more expensive of the two insurances that lenders require. Therefore, it is important to understand home insurance factors in the LBI real estate market to help keep this cost affordable.