Home Insurance in the LBI Real Estate Market
Since Hurricane Sandy which made landfall at the end of October 2012, there has been tremendous focus placed on flood insurance. While it is true that flood insurance can be an expensive bill, the reality is that most homes on Long Beach Island meet or exceed the current base flood elevation requirements. In many cases, homeowners insurance is the more expensive of the two insurances that are required by lenders. Therefore, it is important to understand home insurance factors in the LBI real estate market to help keep this cost affordable.
Home Insurance Factors in the LBI Real Estate Market
There are three main factors that determine the cost of homeowners insurance in the Long Beach Island real estate market. They are:
- The location of your home
- The value of your home
- The condition of your home
Location plays an important role in determining the cost of homeowners insurance on Long Beach Island. Common factors that will impact the rates are proximity to fire stations, fire hydrants, and police stations. While the crime rate is very low on Long Beach Island, subtle differences from town to town can impact this rate as well. The second point to consider is value in the size of your home. Generally, a larger and newer style home will cost more to insure than an older Cape Cod style home. Lastly, the overall condition of the home plays a significant role. This is especially true for older homes in the LBI real estate market which may still utilize galvanized pipes, older wiring, or an older roof. Some homeowner’s insurance companies may have issues with functionally obsolete building materials leading to a higher cost of insurance or the inability to obtain coverage.
Ownership Costs in the Long Beach Island New Jersey Real Estate Market
Buying a home in the LBI real estate market is a significant investment and one that should be made after a complete evaluation of all the factors which determine your ownership costs. Flood insurance and homeowners insurance are two factors which can greatly impact the ability to buy and own a home in the Long Beach Island real estate market. Understanding home insurance factors in the LBI real estate market is an essential first step to buying your dream home! For more information about buying a home or the cost of insurance in the Long Beach Island New Jersey 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 | firstname.lastname@example.org
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