Nathan Colmer | The Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Learn about firm maps, flood insurance, Long Beach Island New Jersey and LBI real estate. FIRM maps are designed to show the level of risk associated with a specific property. This will help determine the flood rate and the risk level associated with a specific property on Long Beach Island.
FEMA has released a helpful address look up too. This will tell you your planned BFE and the flood zone in which your home is located.
Flood insurance is a federal program, and therefore, has to adhere to federal guidelines when seeking to increase flood insurance rates. Flood insurance rates will be increasing, however, these increases were actually approved in September BEFORE Hurricane Sandy had even formed in the Atlantic. These approved changes call for an annual increase in flood insurance based on the risk associated with the property until the new rate is met.
Prior to recent changes, flood insurance was based on two sets of rates: Pre-FIRM and Post-FIRM (FIRM stands for Flood Insurance Rate Map). Pre-FIRM homes, which were homes built on Long Beach Island before the mid 1970's, were based on an established Pre-FIRM rate. Post-FIRM homes were rated on their actual flood elevation above sea level. Under the new law, all homes will be rated based on their actual elevation and level of risk. For some homeowners, this will lead to an increase in flood insurance rates on Long Beach Island. For others, rates will actually DECREASE because the elevation of their house will provide a more favorable rate than the Pre-FIRM rate they were paying.
These homes were built after 1972 on Long Beach Island
Most of these homes should be compliant with the new base flood elevation requirements, however they may have sustained damage from Hurricane Sandy
FEMA flood map changes generally will not impact the post-firm building, since these homes were built to code at the time of their construction
A flood insurance policy on a post-firm home can be transferred upon closing
These homes were built before 1972 on Long Beach Island
Pre-Firm homes, which may have sustained substantial damage, must be raised to the current base flood elevation requirements
It is extremely important that a flood elevation certificate be obtained for any pre-firm home
A flood insurance policy can be transferred upon closing on the pre-firm home
The flood insurance rate will increase 18% per year for a primary home and 25% each year for a second home or investment property until the actual rate is no longer subsidized
The actual elevation of the property, as used for rating purposes, is an equation comprised of the natural elevation of the land above sea level and the elevation of the structure. For rating purposes, these two numbers together determine the property’s elevation. To use an example, if a property is located in an “A8” flood zone, FEMA recommends the property be elevated 8 feet above sea level. If the natural elevation of the ground is 5 feet (much of LBI is between 3 and 6 feet above sea level), then the house need only be elevated 3 feet to meet FEMA’s guideline.
FIRM stands for flood insurance rate map. Essentially, FIRM maps help to determine the areas that are at greater risk for flooding and building requirements in accordance with these maps. A good example of this can be seen in the oceanfront areas of Long Beach Island, which are generally located in a V zone. These areas are perceived to be at a higher risk of damage, and therefore have more stringent building requirements. It is very important to understand FIRM dates, as this can significantly impact the value of a home in the LBI NJ real estate market. FIRM maps make up one segment of flood insurance as it pertains to the LBI real estate market.