LBI Flood Insurance Overview

There are four core metrics used to determine the cost of flood insurance on Long Beach Island. They are:

• The flood zone
• The first-floor elevation
• The number of flood vents
• The grade of the crawlspace, if any

Most of Long Beach Island is located in the "A" flood zone; however, there are areas in the "V" zone, the "AE" zone, the "AO" zone, and the "X" zone. Some of these zones, such as the V zone, can have more stringent building codes and may see a higher flood insurance cost. X zones are very favorable, and many banks will not require insurance in these areas even if you have a mortgage! Due to recent changes to FEMA's rating systems, there has been a lot of attention paid to the flood zone, and this can have a major impact on the annual cost of flood insurance. 

The first-floor elevation is perhaps the most widely known metric. Homes below base flood elevation will see a higher insurance cost than homes at or above base flood elevation (BFE). That said, in most cases, the cost of insurance will be very manageable. While it is impossible to estimate insurance costs without an elevation certificate, most homes below base flood elevation will see a cost of insurance in the $2,000-$3,000 range per year.

The number of flood vents and the crawlspace's elevation are also used to determine the cost of insurance. To see the best rate, the crawlspace's grade must exceed the elevation of the outside grade, and there must be one square inch of flood vent for every one square inch of the building's footprint.

Understanding Long Beach Island New Jersey Flooding

Flooding is a somewhat common occurrence on any barrier island. It is important to remember that the Atlantic Ocean and Barnegat Bay surround Long Beach Island. Therefore, occasional flooding is a fact of life. While hurricanes, such as Hurricane Sandy, certainly captured national attention, flooding is far more likely to occur from a strong nor'easter or even a high tide and full moon combination. For this reason, understanding the different areas of Long Beach Island and where it is likely and where it is not likely to flood is an essential step to buying a home in the LBI real estate market. Flooding can happen anywhere on Long Beach Island, but some areas are more prone to it than others. Generally speaking, the bayside areas are more at risk than their oceanside counterparts. This can further be broken down to Long Beach Island's sections, which may have been built on natural marshes, and therefore retain their potential for flooding. This all comes into play when determining the cost of flood insurance and the potential flood risk. Recently FEMA has implemented new rating systems that take this risk into account.

Flood Insurance and the LBI NJ Real Estate Market

Many factors determine value in the Long Beach Island real estate market, and flood insurance is one of them. Suppose all conditions are met, such as a home being elevated above the recommended base flood elevation, having the proper number of flood vents, and being located in a favorable flood zone. In that case, the cost of flood insurance in the Long Beach Island real estate market will be very low. It is important to understand these costs and what determines them before making an investment on Long Beach Island. 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 buyers and sellers to understand. While Long Beach Island quickly recovered from Hurricane Sandy’s impact, many buyers and sellers still lack the understanding of the costs of Long Beach Island flood insurance and need to be informed so they may make wise decisions. This is complicated by the frequent changes made by FEMA to how flood policies are written.