Insuring a Condominium on Long Beach Island May Be Getting More Expensive
Long Beach Island Real Estate Condos
Prospective buyers should have a firm grasp of ownership costs when buying a property in the LBI NJ real estate market. Since Hurricane Sandy at the end of 2012, flood insurance and homeowners insurance rates have been of particular concern. While many homes on LBI are relatively inexpensive to insure, some condo complexes have recently seen higher insurance rates. Buyers in the LBI real estate market need to be aware of this trend and make sure that adequate and affordable insurance is in place before entering into a home sales transaction.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
LBI Condo Insurance Rates Rising
Condos in the LBI NJ real estate market are often seen as an affordable and enjoyable entry into the market, as the sales price of a condo is typically less than a single-family home. While the upfront sales price fora condo may be less, home buyers in the LBI real estate market need to account for ownership costs. Apart from the sales price, a mortgage payment, and the “normal” costs like taxes and utility bills, insurance can be a surprising variable. Recently, some larger complexes have found that the cost of insurance has increased dramatically. There is a precedent for this, especially in Florida, where insurance rates have increased recently. Some insurance agencies have begun to view larger condo complexes with an overly cautious eye. Therefore, they have either dropped the condo complexes or raised the rates. Condo insurance is a little different from a single-family home or a duplex in that the policy is a commercial policy written to the association. Therefore, the rules are different and, in some ways, open to more variation. This is not to say that buyers should avoid condos, nor do I mean to imply that the cost of insurance on all condos will become unaffordable; rather, buyers need to be aware of this trend and thoroughly investigate an association to ensure this is not an issue. Regardless if you as a buyer are looking at a single-family home, a condo, or a duplex, ownership costs can vary significantly and play an obvious and important role in homeownership.
Insuring a Condominium on LBI NJ real estate market May Be Getting More Expensive
Buying a home in the LBI NJ real estate market is a major investment. All buyers need to understand the market and the trends and know what creates value on Long Beach Island. Insurance is a hot topic in the LBI real estate market, and it can add to the overall cost of owning a home on LBI. While the vast majority of insurance policies are affordable, there are outliers. These outliers can prove problematic as a short and long-term investment. Condos can be excellent investments in the LBI real estate market, but like any purchase, they need to be understood. The cost of insurance may increase, and how a condo prepares for and can deal with these increases can make the difference between a good and a bad second home purchase. For more information about Long Beach Island or about 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
Click here to search all homes for sale in the Long Beach Island NJ real estate market
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