Long Beach Island Flood Insurance Coverage

Generally, flood insurance policies will cover physical damage to the property and your personal belongings. It is necessary to speak with your flood insurance agent before, during, and after buying a home on Long Beach Island to ensure your coverage limits are appropriate. They can often change depending on the revisions of laws and FEMA standards. The flood insurance coverage is generally broken down as follows:

• Structure including; the buildings foundation, electrical systems, plumbing systems
• Mechanicals such as air conditioners, furnaces, water heaters, and elevator equipment
• Major appliances
• Flooring, walls, trim, and debris removal
• Personal property is also covered under the following conditions:
• Personal belongings such as clothing, furniture, and electronics
• Small kitchen appliances
• Valuable items up to certain limits

It is vital to understand what is not covered under flood insurance on Long Beach Island. Generally speaking, damage caused by homeowner neglect and living expenses will not be covered by flood insurance. However, this can vary depending on the situation. Most importantly, homeowners must realize the items that are below base flood elevation are generally not covered. This is especially true of homes with garages on the ground floor where things may be stored. In most cases, the belongings stored in a ground-level garage will not be covered if the garage is attached to the house. With that said, if there is a shed or detached garage, these belongings may, in fact, be covered.

Mortgages and Long Beach Island Flood Insurance

The payout rules are a little different for those LBI homeowners who have a mortgage. When you have a mortgage on a property, the bank or lender has a vested interest in your home. Therefore, flood insurance checks are made out to BOTH the homeowner and the bank. Banks must endorse and essentially approve how the funds are spent to ensure the house they have lent money on is adequately rebuilt.

This generally only applies to insurance payouts regarding the dwelling. Personal contents are usually made out to only the homeowner and do not, in most cases, need bank approval. This is why it is important to understand what is and what is not covered by flood insurance.

Costs of Long Beach Island Real Estate Flood Insurance

A common question I am asked is about the cost of flood insurance for an elevated home. Many people falsely assume any home on pilings is going to have an affordable insurance rate. This is not always the case. To begin, it is helpful to understand what is used to determine the cost of flood insurance. In the interest of brevity, an elevation certificate is used to tell key metrics such as the elevation of the first floor above sea level, the flood zone, and the number of flood vent openings. Depending on the flood zone and the number of flood vents found in the foundation, elevated homes in the Long Beach Island real estate market can have a surprisingly high flood insurance cost. For example, a house built in a V flood zone that lacks proper venting can see a 5 figure annual flood insurance rate...Or it may not depending on all the factors associated with that specific property. The simple addition of some flood vents can reduce an flood insurance premium by a considerable amount of money. All buyers and homeowners should make sure they understand how a home is rated and how to improve the annual flood insurance premium.