Buying a Home on Long Beach Island in a Flood Zone

Buying a Home on Long Beach Island in a Flood Zone

LBI Real Estate Flood Insurance Homebuyer Information

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Long Beach Island Real Estate

When considering purchasing a home in the LBI real estate market, one of the most critical elements to contemplate is flood insurance. Buyers should investigate the property’s history, including past flood damage, drainage issues, or standing water on the property. Even minor flooding can cost significant damage and displacement from the home, so it is best to know what you are getting involved with upfront. You can take some simple steps before committing yourself to buy a home in the LBI real estate market.

  • Ask the Municipalities floodplain manager if the property has ever been flooded, what the flood depth, velocity, and warning time are, if it is subject to any other hazards, and what building or zoning regulations are in effect.
  • Ask the seller for a “Seller’s Disclosure”. This is a document that is completed by the seller at the time of listing. The seller will have to legally disclose any known defect with the property, including past flood damage, drainage issues, or standing water.
  • Ask the seller and neighbors how long they have lived there, if the property has ever been flooded, and if it is subject to any other hazards.

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Buying a Home on Long Beach Island in a Flood Zone

Long Beach Island is located in the 100-year floodplain. Additionally, since LBI is a barrier Island, FEMA has labeled Long Beach Island a Special Flood Hazard Area. It is important to note that LBI is not at a materially more significant risk than other similar barrier islands; instead, it acknowledges that flood can and does occur. A house in a Special Flood Hazard Area holds a 26% chance of enduring a flood disaster during the term of a 30-year mortgage. Over the past 20 years, Long Beach Island has weathered many storms that have caused flooding in varying degrees of severity. If you are looking at buying a property in the LBI real estate market, it is advisable to investigate the possible flood hazard before buying. Prospective homebuyers in the LBI real estate market should also keep in mind that past events do not ensure future results. Just because a home did or did not flood in the past does not guarantee it will or will not flood in the next major weather event. Instead, it is best to look for severe repetitive flood events, which can signal a serious problem.

Every town on LBI regulates building and development to ensure buildings are protected from flood damage. These building codes have been developed to consider the flood zone, and the potential flood risk a home may encounter. Houses that are considered substantially damaged by fire, flood, or other causes or that is substantially improved (i.e., more than 50% of its market value) must comply with flood regulations, including elevating above the flood level. House raising took place all over Long Beach Island in the aftermath of Hurricane Sandy. While the process of elevating a home is both expensive and a lengthy project, there are benefits to doing so. It is safe to say that Long Beach Island will be far better prepared for the next major weather event thanks to these proactive steps being taken today.

Since Long Beach Island is located on a barrier Island, flood insurance is highly recommended to safeguard the investment. Al;l buyers in the LBI real estate market should be aware that homeowner’s insurance typically does not include coverage for damage caused by flooding. The best way to safeguard the purchase of a home in the LBI real estate market is with a flood policy through either the National Flood Insurance Program or a private insurance company. These policies can be purchased through any licensed property insurance agent. An insurance agent can advise you on the amount of coverage needed, if an excess policy is advisable and if you need content coverage. All buyers should remember that if you are looking to purchase a home with a mortgage, flood insurance will most likely be a lending institution requirement.

LBI Real Estate Flood Insurance Homebuyer Information

There are many elements to buying a home in the Long Beach Island real estate market. Flood insurance and flood risk are two of the most important. These factors can have a long-lasting impact on the value of a home in the LBI real estate market, as well as have an impact on your ability to enjoy the house itself. There are many resources available to educate yourself on flood risks, flood insurance costs, and the factors that determine a home’s value in the LBI real estate market. It is highly suggested that you take advantage of these resources before entering into a transaction. If you have any questions about buyingselling or investing in the LBI real estate market, please do not hesitate to contact me.

By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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