Factors that Impact the Cost of Homeowners Insurance in the LBI Real Estate Market
factors that impact the cost of homeowners insurance in the LBI real estate market
Long Beach Island Real Estate
Since Hurricane Sandy, there has been considerable attention in the LBI real estate market focusing on flood insurance. While this is an extremely important topic and one that can have significant impact on the value of a home on Long Beach Island, it is equally important to understand homeowners insurance and the factors that impact the cost of homeowners insurance on LBI when determining ownership costs.
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Factors that Impact the Cost of Homeowners Insurance in the LBI Real Estate Market
There are three major factors that are used to determine the cost of homeowners insurance in the Long Beach Island real estate market:
- Your home’s value
- The location of your home
- The overall condition of your home
The value of your home impacts the cost of insurance. In general, if a home is worth more it will cost more to insure given the larger risk assumed by the insurance company. Many different factors can impact the cost of insurance when considering the location of a home. Proximity to things like fire hydrants and fire departments can have a surprising impact on the cost of homeowners insurance in the LBI real estate market. Lastly, the condition of the home has a strong impact for the insurance companies. They will look at factors such as the age and condition of pipes, age and condition of the electrical wires, the roof, etc. Many of the older Cape Cod style homes had galvanized piping, which may raise a concern for some insurance companies.
Homeowners Insurance and the Long Beach Island Real Estate Market
As I mentioned above, there is tremendous focus placed on flood insurance, but homeowners insurance can exceed the cost of flood insurance in many cases. The majority of the homes on Long Beach Island are well above base flood elevation and show premiums in the $600-$1000 per year range. By comparison, many homeowner’s insurance policies are $1500-$2000! This highlights the importance to evaluate all factors and all ownership costs when buying a home in LBI real estate market. For more information about the LBI real estate market or more information about factors that impact the cost of homeowners insurance in the LBI real estate market, please do not hesitate to contact me.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
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