Building A New House In The LBI Real Estate Market on Long Beach Island
Hurricane Sandy and the LBI NJ Real Estate Market
Hurricane Sandy caused major damage to the Long Beach Island area when it made landfall at the end of October 2012 and prompted a huge wave of new construction on Long Beach Island. The face of Long Beach Island has been changing with new homes and major renovations taking place on LBI which should ultimately produce a stronger real estate market. When Rebuilding After Hurricane Sandy on LBI, it is important to keep in mind the current codes and flood insurance regulations to ensure your flood risks are kept to a minimum.
Rebuilding After Hurricane Sandy on LBI
Building a new house on Long Beach Island can be an excellent investment and can realize immediate equity in the LBI NJ real estate market. There are still some excellent opportunities with storm damaged homes on LBI as well as non damaged knock downs but it is important to remember that when Rebuilding After Hurricane Sandy on LBI, building to the new flood codes will lessen the risk of damage from future storms and lower your costs of flood insurance. There are some important points to consider when Rebuilding After Hurricane Sandy on LBI:
- Flood insurance is based on the perceived risk associated with the property
- Risk levels are determined by many factors but the elevation above sea level and the flood zone top the list
- Foundation systems and flood vents can greatly impact the amount a homeowner pays for flood insurance on Long Beach Island
All properties on Long Beach Island have a base flood elevation associated with them. There are three predominate flood zones on LBI. They are an A flood zone, a V flood zone and a X flood zone. The majority of Long Beach Island falls into the A flood zone. Homes in an A zone are permitted to have solid block or piling foundation systems and usually fall into a Base Flood Elevation (BFE) of 7-9 feet. V zones are the most restrictive with higher elevations (usually 9-15 feet) and limitations on what can be used as a foundation system. For example, sold wall foundations (blocks) are not permitted as the foundation system needs to have break away walls. V zones are mostly limited to the oceanfront and some bayfront areas on LBI. The X zone is actually the best zone to be in as it is the least restrictive with some lenders not even requiring flood insurance in these zones!
There are two foundation systems commonly used for new construction in the LBI real estate market. The most common is a piling support system with a breakaway wall foundation and flood vents. This system will be viewed as less risky by insurance companies and can often result in a discount on the flood insurance premium. Less commonly used are block foundations. Although this was the go to method for homes built in the early stages of development on LBI, these systems are rarely used for new home on LBI. You do see this foundation system commonly used for raising homes on LBI. In either case, flood vents are an important upgrade that can significantly raise or lower the cost of flood insurance on LBI. The rule of FEMA is you need 1 square inch of flood vent for every 1 square foot of enclosure to meet code.
Building a New Home on Long Beach Island
Regardless if your plan is to buy a knock down on Long Beach Island or build on an existing property, keeping in mind the guidelines imposed by FEMA will not only lower your risk, it will also save you money in the long run! Rebuilding After Hurricane Sandy on LBI offers some excellent opportunities but it is important to understand the current LBI real estate market trends and rebuild in line with the current trends so as to preserve your investment on Long Beach Island!
If you would like more information about the LBI real estate market, new construction or Rebuilding After Hurricane Sandy on LBI feel free to contact me, Nathan Colmer, anytime and I will be happy to answer any questions you have!
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org