Flood Insurance Rates on LBI NJ and the Long Beach Island New Jersey Real Estate Market
Long Beach Island NJ, Hurricane Sandy, and Flood Insurance
When Hurricane Sandy impacted Long Beach Island, NJ, residents and those looking to buy or sell in the LBI real estate market were faced with a whole new set of questions that needed to be answered. First and foremost on everyone’s mind was how The storm and the aftermath would impact flood Insurance Rates on Long Beach Island NJ.
Interestingly, flood insurance rates are a federal program meaning any changes made to the program, including rate increases, are national and not local. In September 2012, Congress passed a major overhaul of the entire National Flood Insurance Program. The changes that have taken place to flood insurance on Long Beach Island are affected by this act of Congress rather than Hurricane Sandy! Regardless, Flood Insurance Rates on Long Beach Island NJ do have several factors that can impact rates.
What Determines Flood Insurance Rates on Long Beach Island NJ
If you are a homeowner on Long Beach Island, New Jersey or if you are looking to buy or sell in the LBI real estate market, it is essential to have a complete understanding of flood insurance rates. Flood insurance premiums can constitute a major, or very minor depending on the factors below, a portion of the monthly expense of a house on LBI. You should always consult with an insurance agent to have a complete understanding of your unique situation but some of the significant indicators of Flood Insurance Rates on Long Beach Island, NJ are:
- Current Flood Zone on Long Beach Island: Most of LBI lies in either an A or a V zone. V zones are considered riskier and typically carry a higher flood premium.
- The elevation of the first floor: Contrary to what the general impression is, not every home on Long Beach Island needs to be raised. The elevation is an equation of both the natural ground elevation (most of LBI is around 4-7 feet) and the structure’s elevation. Even in the case of the traditional Cape Cod-style house, there are about 2-3 feet of elevation in the foundation. The result is many homes on Long Beach Island are already at their Base Flood Elevation and do not require raising to avoid high Flood Insurance Rates on Long Beach Island NJ
- The proximity of the house to a high-risk flood area on LBI: As I mention above, most of LBI is either an A or a V zone. A V zone is considered the higher risk area, so if your property is located on the border of a V zone, it may be prudent to rebuild to V zone standards if the area is remapped in the future.
Flood Insurance Rates on Long Beach Island NJ are based on risk: the National Flood Insurance Program is designed to base the flood rate on the risk of the property. In general, if a property is located in a higher-risk area, such as a V zone, you will pay more in flood insurance unless you take additional steps to safeguard the property. Additionally, factors such as crawl space elevation (above or below grade) can influence Flood Insurance Rates on Long Beach Island NJ
Flood Insurance Rates on Long Beach Island NJ and the LBI Real Estate Market
if you are considering buying or selling in the LBI real estate market on Long Beach Island, it is important to understand Flood Insurance Rates on Long Beach Island NJ, fully. If you are looking to sell your home on LBI, it is important to explain to potential buyers the facts and fiction of flood insurance premiums. This can be the difference between a buyer buying your house or passing it over for another. If you are buying in the LBI real estate market, you should request a flood elevation certificate. This will note the ground elevation and the elevation of the first floor. This can help you understand and plan for Flood Insurance Rates on Long Beach Island NJ and make sure you do not purchase a house that is not affordable for you.
If you would like additional information regarding Flood Insurance Rates on Long Beach Island NJ, or the Long Beach Island real estate market, please do not hesitate to contact me, Nathan Colmer, with any questions or Click Here to search all homes for sale on Long Beach Island!
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org