LBI Oceanside Flood Insurance
Nathan Colmer
Cell: 609.290.4293 | Office: 609.492.1511
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Cell: 609.290.4293 | Office: 609.492.1511
Scroll Down For More Information
Since Hurricane Sandy made landfall at the end of 2012 flood insurance has been a major factor in the LBI real estate market. While the oceanside areas are certainly higher than the bayside areas of Long Beach Island, flood insurance is still a very important topic for all buyers and sellers to understand.
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. 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. Being that the oceanside areas are naturally higher than the bayside areas, it is a likely assumption that a home on the Oceanside will cost less to insurance than a home on the bayside, assuming all factors are equal.
Flood insurance rates will impact the value of a home in the Long Beach Island real estate market. An elevated home will feel like a “safer” property to the open market and will generally attract more buyers (thus increasing the value). A home that is below Base Flood Elevation is still a viable option for many buyers and will still have a great deal of value, but not as much as a home with a lower cost of flood insurance.
Since the homes on the oceanside are usually higher, it is safe to say that the oceanside tends to make a better long term investment (at least from an insurance point of view).
There are four core metrics used to determine the cost of flood insurance on Long Beach Island. They are:
The flood zone
Most 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. Some of these zone, for example the V and the AO zone, can have more stringent building codes and may see a higher cost of flood insurance. X zones are very favorable and many banks will not require insurance in these areas even if you have a mortgage!
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. That said, in most cases, the cost of insurance will be very manageable. While it is not possible to give an estimate for the cost of insurance (as there are so many unique variables specific to each home), most homes below base flood elevation will see a cost of insurance in the $2,000-$3,000 range per year.
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.
Learn about the areas that make up the oceanside on Long Beach Island. You can follow market statistics, read about market trends and better prepare yourself for buying a home on the oceanside parts of LBI.
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.
Read more about the LBI real estate market and the market for oceanside and oceanblock homes on my Long Beach Island real estate blog.
