Flood Insurance on LBI NJ After Hurricane Sandy
Long Beach Island and Hurricane Sandy
At then end of October 2012 Hurricane Sandy made landfall on Long Beach Island NJ. While Long Beach Island has made tremendous strides towards recovery with the vast majority of homes and businesses open for Summer 2013, many questions remain in people’s minds. Perhaps the question at the forefront of most peoples minds, both current owners and also those looking to purchase in the LBI real estate market, relates to the Average Flood Insurance Increase on Long Beach Island NJ
Understanding Flood Insurance in the LBI Real Estate Market on Long Beach Island NJ and the Average Flood Insurance Increase on Long Beach Island NJ
Flood insurance is a federal program and therefore has to adhere to federal guidelines when seeking to increase flood insurance rates. Flood insurance rates will be increasing, however these increases were actually approved in September BEFORE Hurricane Sandy had even formed in the Atlantic. These approved changes call for a 25% increase in flood insurance based on the actual elevation of your property. The LBI real estate market and the Average Flood Insurance Increase on Long Beach Island NJ will be determined by several factors including:
- Ground elevation
- House elevation
- Number of flood vents
- Elevation of crawlspace above or below grade
- Primary or secondary home
Prior to recent changes, homes were based on two sets of rates: Pre-FIRM and Post-FIRM (FIRM stands for Flood Insurance Rate Map). Pre-FIRM homes, which were homes built on Long Beach Island before the mid 1970’s. Post-FIRM homes were rated on their actual flood elevation. Once the changes are approved, all homes will be rated based on their actual elevation. For some homeowners, this will lead to an increase in flood insurance rates on Long Beach Island. For others, rates will actually DECREASE because the elevation of their house will provide a more favorable rate than the Pre-FIRM rate they were paying. The actual elevation of the property, as used for rating purposes, is an equation comprised of the natural elevation of the land above sea level and the elevation of the structure. These two numbers together determine the properties elevation for rating purposes. To use an example, if a property is located in an A8 flood zone, FEMA recommends the property be elevated 8 feet above sea level. If the natural elevation of the ground is 5 feet (much of LBI is between 3 and 6 feet above sea level) then the house need only be elevated 3 feet to meet FEMA’s guideline.
So What is the Average Flood Insurance Increase on Long Beach Island NJ
This is a hard question to generically answer. To understand what the insurance rates of a property will be, it is best to obtain a flood elevation certificate and speak with an insurance agent. The good news is, most homes will not see a significant increase in their insurance rates on Long Beach Island barring a major change to the property or the flood zone.
For more information on the Average Flood Insurance Increase on Long Beach Island NJ or the LBI real estate market in general, please contact me and I will be happy to help!
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org
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