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Long Beach Island Flood Insurance

 

 

 

 

 

Long Beach Island Flood Insurance | Long Beach Island NJ Real Estate | LBI Real Estate Market

 

Flood Insurance and the LBI NJ Real Estate Market

Just a few inches of flood water from a storm can cause significant damage to your home and be carry a surprisingly high cost of repair Flood insurance is intended to provide protection against this unexpected cost, and for the majority of homes on Long Beach Island, is very affordable. Different types of flood insurance are available to homeowners, tenets, and the owners of condos, as well as an entire condominium complexes throughout the Long Beach Island real estate market. The cost of flood insurance will depend on the unique characteristics of a home, but generally is determined by the elevation above sea level and the compliance with current building regulations. Protecting your Long Beach Island real estate investment with flood insurance is not only recommended, but required for homeowners who carry a mortgage.

 

 

 

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 Long Beach Island NJ Real Estate | LBI Real Estate Market
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 Long Beach Island NJ Real Estate | LBI Real Estate Market

 

 

Long Beach Island Flood Insurance | Long Beach Island NJ Real Estate | LBI Real Estate Market

LBI Flood Insurance Overview

There are several determinants that make up the cost of flood insurance on Long Beach Island. The most common are:

  • The flood zone
  • The first floor elevation
  • The number of flood vents
  • The elevation of the crawlspace

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. Even with this being the case, the cost of insurance is usually very manageable. Since there are so many unique variables specific to each home it is not possible to give an estimate for the cost of insurance however most homes below base flood elevation will see a cost of insurance in the $2,000-$3,000 range per year.

Much 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. The V and the AO zone may carry more stringent building guidelines and may see a higher base cost of flood insurance.

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.

Most properties will see their best insurance rate 3 or 4 feet above base flood elevation. By building to the maximum height allowed, not only does the risk of damage to the property diminish, so too do the costs of insurance. The number of flood vents in the foundation also plays a significant role. There was recently a home for sale on Long Beach Island built well above the base flood elevation, however it had no flood vents. The insurance premium for this particular property was roughly $2,600/ year. If the proper number of flood vents were installed, that premium would drop to only $600/ year! Lastly, the flood zone plays a role. Most of Long Beach Island is in an “A” flood zone.  A property in a “V” flood zone will see a higher insurance rate as V zone properties are considered to be more risky. The good news is, V zones are primarily located along the oceanfront and parts of the bay front so for most buyers in the LBI real estate market, this will not be a major issue.

 

 

 

Long Beach Island Flood Insurance | Long Beach Island NJ Real Estate | LBI Real Estate Market

Flood Insurance Terms and Flood Insurance Costs on Long Beach Island NJ

Flood insurance rates are based on the property’s elevation above Base Flood Elevation or BFE. Generally speaking, the higher a property is above BFE, the lower the rate will be (up to 3 feet above BFE). There are a few key terms that are essential to Understanding Flood Insurance on Long Beach Island New Jersey.

  • Base Flood Elevation: Also known as BFE this refers to the elevation above sea level a property is recommended to be built to. The BFE is obtained by combining the natural ground elevation with the foundation’s structure.
  • Flood Insurance Rate Map: Also known as a FIRM map, these maps are produced and distributed by FEMA and show the BFE of a certain area like Long Beach Island, the flood zone and risk premium zones.
  • Pre Firm: This term relates to homes built before the first FIRM date (December 31st 1974). Most of the Cape Cod style homes on Long Beach Island are considered to be Pre-FIRM construction unless they have been substantially improved.
  • Post Firm: This term relates to home built after December 31st 1974 and were built to the standards of flood elevation at that time. Post-FIRM homes on Long Beach Island are generally raised on pilings.
  • If you are considering buying or selling in the LBI real estate market on Long Beach Island, it is important to have a full understanding of Flood Insurance Rates on Long Beach Island NJ. If you are looking to sell your home on LBI, it is important to be able 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.

 

 

 

Long Beach Island Flood Insurance | Long Beach Island NJ Real Estate | LBI Real Estate Market

Flood Zones on Long Beach Island New Jersey

Flood zones were established by the National Flood Insurance Program (NFIP) and the Federal Emergency Management Agency (FEMA) to help understand the risks associated with areas of the United States located in a flood zone. Surprisingly, according to FEMA, we ALL live in a flood zone. The delineation takes place when determining if we live in an area of low, moderate or high risk for flooding. Long Beach island NJ is grouped into two primary flood zones. They are an “A” flood zone and a “V” flood zone. Interestingly enough, there are even a few “X” zones on LBI which require little to no flood insurance!

 

A and AE Flood Zones on Long Beach Island NJ

FEMA defines an A and AE flood zone has having a 1% chance of an annual flood (it is partly from this definition that the term “100 year storm” comes from when speaking of Hurricane Sandy). Homeowners in an A or AE flood zone on Long Beach Island can expect the following:

  • Flood insurance rates on LBI will be less expensive than a “V” zone
  • Building codes will be less restrictive in an A or AE flood zone on Long Beach Island.
  • Breakaway wall foundations are not required (although they are recommended)

New Construction in a V Zone on Long Beach Island NJ

If you are planing to build a new home in the V zone on LBI, your architect will explain the exact guidelines involved with the construction of the house but a few points to consider are:

  • Everything below base flood elevation must be sacrificial and no living space can be below base flood elevation when considering New Construction in a V Zone on Long Beach Island NJ
  • The exterior walls must consist of a break away wall system
  • The garage slab must be no more than 4″ thick and cannot be supported by pilings of other means

In short, New Construction in a V Zone on Long Beach Island NJ must be able to sustain high velocity winds and water damage such that the entire underneath of the house can be “washed away” and the water may flow freely below.

 

 

 

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Nathan Colmer

The Van Dyk Group

Cell: 609.290.4293

Toll Free: 800.222.0131

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