Flood Insurance on Long Beach Island
LBI Flood Insurance OverviewLong Beach Island Real Estate
The real estate market on Long Beach Island has seen some strong activity and an increase in both the number of homes sold and the average sales price. Part of the reason for the recent improvement in the LBI real estate market as to do with a better understanding of flood insurance. In the immediate aftermath of Hurricane Sandy, there was widespread concern that flood insurance would price out the market for homes on Long Beach Island. This is not all the case. Therefore, for those looking to buy a home on Long Beach Island, a quick LBI flood insurance overview can be very helpful.
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LBI Flood Insurance Overview
There are four core metrics used to determine the cost of flood insurance on Long Beach Island. They are:
The flood zone
- The first floor elevation
- The number of flood vents
- The elevation of the crawlspace
Most of Long Beach Island is located in the “A” flood zone however there are areas in the “V” zone, the “AE” zone, the “AO” zone and the “X” zone. Some of these zone, for example the V and the AO zone, can have more stringent building codes and may see a higher cost of flood insurance. X zones are very favorable and many banks will not require insurance in these areas even if you have a mortgage!
The first floor elevation is perhaps the most widely known metric. Homes that are below base flood elevation will see a higher cost of insurance than homes at or above base flood. That said, in most cases, the cost of insurance will be very manageable. While it is not possible to give an estimate for the cost of insurance (as there are so many unique variables specific to each home), most homes below base flood elevation will see a cost of insurance in the $2,000-$3,000 range per year.
The number of flood vents and the elevation of the crawlspace are additionally used to determine the cost of insurance. In order to see the best rate, the elevation of the crawlspace must exceed the elevation of the outside grade and the flood vent openings must be one square inch for every one square foot of enclosure.
Buying a Home in the LBI NJ Real Estate Market
There are a number of factors that must be considered when buying a home in the LBI real estate market. Flood insurance is indeed a cost that must be taken into account. The only way to determine the true cost of flood insurance is to obtain an elevation certificate and obtain a quote for the cost based on the rating. This is a simple process and one I am happy to help with. For more information about this LBI flood insurance overview or the LBI real estate market in general, call, text or email me and I will respond right away!
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.BuyLBI.com
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