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