Flood Insurance and Bayside Homes

Flooding is a somewhat common occurrence on any barrier island. It is important to remember that Long Beach Island is an island surrounded by the Atlantic Ocean and Barnegat Bay. Therefore, occasional flooding is a fact of life. While hurricanes, such as Hurricane Sandy, certainly captured national attention, flooding is far more likely to occur from a strong nor’easter or even a high tide and full moon combination. It is for this reason that understanding the different areas of Long Beach Island and where it is likely and where it is not likely to flood is an essential step to buying a home in the LBI real estate market. Flooding can happen anywhere on Long Beach Island, but there are some areas that are more prone to it than others. Generally speaking, the bayside areas are more at risk than their oceanside counterparts. This can further be broken down to individual sections of Long Beach Island which may have been built on natural marshes, and therefore retain their potential for flooding. This all comes into play when determining the cost of flood insurance. I have written many articles about flood insurance and what goes into writing a policy, but essentially a home’s first floor elevation in conjunction with the current building codes will determine the cost of flood insurance.

Flood insurance is directly linked to home values in the LBI NJ real estate market. Homes that are at or above the new base flood elevations tend to be an easier sale and are therefore worth more in the current market. Homes that are below base flood elevation still have value, but additional “homework” is needed to determine what the new flood insurance rate will be and if it makes financial sense to raise the existing house.

There are three key points to take into account when considering buying a home in LBI real estate market. They are:

• The style and layout of the home
•  The condition of the home
• The location

Older homes, especially those on the bayside, may be at a risk of sustaining a higher cost of flood insurance. This can be significant and should be factored in to a decision. Even newer homes, built within the last 10 years, can have some condition issues as styles and market trends change. Purchasing something that is too specific for the market can result in a poor investment. Last but certainly not least, the location of the property supersedes everything. When location of the property is the major determinant of value in the LBI real estate market, the purchasing of a site in a good location is key.

Bayside homes, and in some cases Bay block homes, are located west of Long Beach Blvd. and require the crossing of the main road. When looking at a Bayside home on LBI, it is important to keep in mind that proximity to a traffic light which can make crossing Long Beach Blvd. much easier. The Bayside offers a quieter area than most Oceanside or ocean block locations and many Bayside homes will have a nice view of the bay and sunset. The ground elevations tends to be lower on the Bayside, it is important to check elevation levels relative to the cost of flood insurance. Bayside homes will commonly be less expensive than those on the Oceanside or ocean block.

LBI Flood Insurance

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). On the other side of the coin, the lower below base flood elevation, the higher the flood insurance cost will be. Special conditions will apply when rating flood insurance costs on Long Beach Island such as: 

• Does the property have a basement (and believe it or not there are homes on LBI that have basements)
• The number of flood vents in the foundation
• If the crawlspace below the grade of the property
• The flood zone in which the property is located.

Remember: The actual costs of flood insurance are nearly impossible to estimate exactly in the absence of a flood elevation certificate. This document, which can be obtained from a survey company, tells not only the ground elevation, but also any special conditions that will impact the flood premium on LBI. 

LBI Flood Zones

The base flood elevation of a home is determined by combining the ground elevation with whatever foundation is present on a house. There are some areas of LBI which are located at higher natural elevations and this creates the need for flood zones. 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 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!

FEMA defines an “A” and “AE” flood zone as 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 will be less expensive than a “V” zone.
• Building codes will be less restrictive than a “V” zone.
• Breakaway wall foundations are not required (although they are recommended).

Flood insurance in an “A” or “AE” flood zone is less expensive than a “V” zone due to FEMA’s interpretation that flooding, when it occurs, will be less destructive. In order for a property to be in a “V” zone on LBI, FEMA must ascertain that the subject property will sustain the direct impact of a 3 foot or higher wave. In the eyes of FEMA, properties on LBI in an “A” or “AE” flood zone do not share this risk. It is for this reason that homes in “A” and “AE” flood zones can be built on a solid block foundation with flood vents rather than the break away wall system required in a “V” zone

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What is "the bayside" on Long Beach Island?

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LBI Real Estate Home Sale Information

Here you can browse updates on recent sales in the LBI real estate market. You can browse past years updates as well to gain perspective on the current market trends we see throughout the Long Beach Island New Jersey real estate market.

Long Beach Island Flood Insurance Information

Flood insurance has become an important topic for both buyers and sellers in the LBI real estate market. Buyers and sellers should be aware of their flood zone, their flood risk and how this impacts home prices in the Long Beach Island real estate market. Learn the ins and outs of flood insurance and why it is so important to your LBI real estate transaction.

Additional Information

Read more about the LBI real estate market and the market for bayside and bayblock homes on my Long Beach Island real estate blog.