Flood Insurance on Long Beach Island
Flood Insurance and the LBI NJ Real Estate Market
If you are considering LBI real estate new construction, I have put together a wealth of information to help you! The Long Beach Island real estate market offers some of the most desirable opportunities for modern coastal living. Whether you’re searching for a brand-new beach home or planning to build a new home yourself for the equity benefits, investment in Long Beach Island real estate offers excellent opportunities. Explore the latest LBI real estate listings featuring custom-built homes, prime locations for building your own home, and understand how building new can save you 20%-30% in the LBI real estate market. Start your journey today and discover why LBI's new construction homes are an excellent choice for buyers seeking value in the Long Beach Island New Jersey real estate market.
Long Beach Island Flood Insurance
Flood insurance is one of the most important concepts for buyers and sellers to understanding in the LBI NJ real estate market. There is a real cost to flood insurance which may be significant in some cases. While most homes on Long Beach Island are at or above base flood elevation (making their insurance costs low), there are still many important elements to understand before entering into a transaction in the LBI real estate market.
Long Beach Island Beaches
The beaches of Long Beach Island have long been known as among the best on the East Coast. The natural white sand beaches of "sugar sand" are cleaned daily by specialized machines to remove any debris that may have washed up. While all the beaches of LBI are public, a beach badge is required to use the beach during the summer season.
Dining on Long Beach Island
Long Beach Island is dotted with many award wining restaurants. The options range from small "local" eateries to upscale, Zagat rated establishments. LBI has the advantage of the local Barnegat Light fishing fleet to provide some of the best seafood around!
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Flood Insurance and the LBI NJ Real Estate Market
The damage caused by flooding, some of which was only a few inches of water inside a house, showed very clearly the advantage of having a house raised on pilings or block foundations. House Raising on Long Beach Island, New Jersey, which prior to the storm was a rather obscure profession, suddenly was thrust into the forefront of many people’s minds. Let me begin by saying that not every house on Long Beach Island needs to be raised. This, above all else, is perhaps the biggest falsity concerning house raising on Long Beach Island. FEMA has established a Base Flood Elevation or “BFE” for all properties on Long Beach Island. This is the level above sea level to which FEMA recommends a new house be built to or a house be elevated to, should a major renovation take place. The BFE is computed by adding the natural elevation of the ground above sea level with the elevation of the structure. For example:
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A house has a Base Flood Elevation (BFE) of 8 feet.
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The ground elevation is 5 feet above sea level.
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The house must be elevated 3 additional feet to meet FEMA’s requirement.
A house needs to be raised (by order of the town and FEMA) only if a new construction is taking place, or if the house was “substantially damaged”. A house is considered to be “substantially damaged” when the costs of repairs exceed 49% of the replacement value of the structure. There are in fact many locations on LBI where the ground elevation is already at Base Flood Elevation, and therefore, no additional elevation would be required to meet FEMA’s minimum standard. This deals only with the requirement minimum. There is an inherent advantage to a house that is raised, as it will be safer in future storms and flood insurance will be less expensive. Thus far, my goal is simply to point out that House Raising on Long Beach Island New Jersey is not a requirement to obtain flood insurance and is not a necessity for all homeowners on LBI.
