LBI Real Estate Flood Insurance

A, V and X Flood Zones in the LBI NJ Real Estate Market

There are three flood zones on Long Beach Island. They are:

• A flood zone on LBI

• V flood zone on LBI

• X flood zone on LBI

Most of Long Beach Island is in the “A” flood zone. Homes in the “A” zone will typically see lower rates, as they are considered to be less risky. The “V” zone is considered to be one of the worst zones, as it runs the risk of sustaining a direct wave impact of 3 feet or higher (according to FEMA). Therefore, flood insurance rates tend to be higher in a “V” zone as compared to the “A” zone. There are strict building codes that must be followed when building in the “V” zone. Typically, ‘V” zones are limited to the oceanfront and some bayfront areas. The “X” zone is the best zone to be in on LBI! Homes in the “X” zone may not require flood insurance as they are considered to be “safe”. These areas tend to be on the oceanside in South Beach Haven and suffered no damage from Hurricane Sandy.

The federal government, which determines flood rates and flood zones on Long Beach Island, has performed a major revision of the flood zones, and this revision is where many questions arise. There are two major zones to consider. Flood Zones: “ A” and “V”. If your property is in an “A” zone, which the majority of Long Beach Island is, typically one can anticipate lower rates and less restrictive building restrictions than the “V” zone. If your property is located in a “V” zone, there are a few points to consider:

• Foundations must consist of break away walls and cannot be located on a solid block foundation.

• The base flood elevation on Long Beach Island in a “V” zone tends to be higher, usually about 10 feet.

• Additional considerations must be made for new construction, such as sacrificial garage slabs (no more than 4″ thick and not reinforced by pilings)

If your property was located in an “A” zone, and has now been redrawn to a “V” zone, AND the property sustained substantial damaged, you must adhere to these new building guidelines, or be exposed to higher flood insurance.

Rebuilding in a V Zone on Long Beach Island NJ

A “V” flood zone is considered to be an area of higher risk. Therefore, flood insurance rates tend to be higher in a V zone as compared to an A zone. Likewise, there are building restrictions and additional methods that are recommended to safeguard the house. It is very important to understand New Construction in a V Zone on Long Beach Island NJ but in short homes but be built higher, with breakaway walls and, to achieve the best rate, built without enclosures below the structure. When building in an A or a V zone, both FEMA and the towns have established a minimum required height, often known as the BFE (Base Flood Elevation) however building higher than the BFE will lower both the flood insurance premium on LBI as well as future flood risk in general. A helpful example is offered by FEMA’s  to demonstrate how 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 VE 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!

Rebuilding in an A Zone on Long Beach Island NJ

Rebuilding in an A Zone on Long Beach Island NJ after Hurricane Sandy offers a very similar situation as building in a V zone however it is important to note that flood insurance rates are generally less expensive and building codes are more relaxed. Using the same scenario as above, FEMA’s estimates are as follows:

• A single story home built on wood pilings in a A flood zone built to the current BFE (base flood elevation) would have an estimated monthly premium of $143/ 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 $46/ month!

REAL ESTATE TIP: Even if you have an elevation certificate make sure you are aware of a home's current flood zone. Many homes saw their zone change after Hurricane Sandy (some actually improved because the area suffered no damage). Older elevation certificates may have out of date information so a new elevation certificate is ALWASY recommended.