Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer

LBI Real Estate Buyers

Nathan Colmer | Van Dyk Group

C: 609.290.4293 | O: 609.492.1511

Long Beach Island Homeowners Insurance

 

In recent years there has been tremendous focus placed on flood insurance. While it is true that flood insurance can be an expensive bill, the reality is that most homes on Long Beach Island meet or exceed the current base flood elevation requirements. Thanks in part to the new construction guidelines, flood insurance has become a very affordable cost in the LBI real estate market for many homeowners. In numerous cases, homeowners insurance is the more expensive of the two insurances that lenders require. Therefore, it is important to understand home insurance factors in the LBI real estate market to help keep this cost affordable.

 

 

Long Beach Island Homeowners Insurance | LBI Real Estate | Long Beach Island

LBI Real Estate Buyers

 

 

Homeowners Insurance and Buying a Home in the LBI NJ Real Estate Market

As I mentioned above, there is tremendous focus placed on flood insurance, but homeowners insurance can exceed the cost of flood insurance in many cases. The majority of the homes on Long Beach Island are well above base flood elevation and show premiums in the $600-$1000 per year range. By comparison, many homeowner’s insurance policies are $1500-$2000! The cost difference between insurance policies highlights the importance of evaluating all factors and all ownership costs when buying a home in the LBI real estate market. When looking to buy a home in the LBI real estate market, it is necessary to understand your ownership costs fully. The very last thing you want to do is spend too much on a beach house!

Long Beach Island Homeowners Insurance | LBI Real Estate | Long Beach Island

Long Beach Island Homeowner Insurance

Homeowners insurance is required for any home with a mortgage and is designed to insure the property against fire, injury, and other similar catastrophes. Homeowner’s insurance does not cover flood damage! It is important to remember that Long Beach Island is a shore area and as such, not all insurance companies will write a policy at the beach. It is best to check with several companies, including local companies, to ensure you have the best rate and protection.

If you are going to be renting your home out as an investment, it is essential that you make sure your liability insurance is sufficient to cover your assets in the event of a claim being filed. A homeowner should speak with their insurance agent to make sure their cover for slip, trip, and fall incidences as well as other unfortunate occurrences.

 

 

 

Long Beach Island Homeowners Insurance | LBI Real Estate | Long Beach Island

Factors that Impact the Cost of Homeowners Insurance in the LBI Real Estate Market

Three common factors are used to determine the cost of homeowners insurance in the Long Beach Island real estate market:

The value of your home impacts the cost of insurance. If a home is worth more, it will cost more to insure, given the insurance company's more sizable risk. Many different factors can impact the cost of insurance when considering the location of a home. Proximity to things like fire hydrants and fire departments can have a surprising impact on homeowner insurance costs in the LBI real estate market. Lastly, the condition of the home will impact the rate charged by an insurance company. Insurers will look at factors such as the age and condition of pipes, the age and state of the electrical wires, the roof's condition, etc. Many of the older Cape Cod-style homes had galvanized piping, which may raise a concern for some insurance companies and be deemed uninsurable in some cases. Every insurance company will have a specific set of guidelines used to determine the cost of a homeowner's policy, so it is best to check with your insurance agent to understand how your home will be rated.

 

 

 

Long Beach Island Homeowners Insurance | LBI Real Estate | Long Beach Island

Long Beach Island Real Estate Ownership Costs

The costs of owning a home on Long Beach Island will, of course, vary depending on the style of the home, the size, and the location. That said, there are a few everyday expenses that we can anticipate for any home.

  • Monthly utility bills (water, sewer, electricity, gas, etc.)
  • Flood insurance
  • Homeowners insurance
  • Property maintenance
  • Property taxes

Homeowners' insurance can, in some cases, be one of the most expensive of the bills mentioned above, usually following only property taxes. Understanding what goes into homeowners insurance ratings can go a long way to increasing your buying power in the LBI real estate market. Generally, things like newer infrastructure (wiring, pipes, etc.), a newer roof, updated windows, and a security system will go a long way to lowering your cost of ownership when buying a home on LBI. Property taxes are surprisingly affordable on Long Beach Island and are generally much lower than a homeowner pays in a primary market. Other basic services are not individually billed but rather incorporated into the taxes, such as trash pick up, snow removal, etc. Overall, living on Long Beach Island is surprisingly affordable when the right house is purchased and all the costs are understood up front.

 

 

 

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Your LBI Beach House is a Phone Call Away! Call Nathan Colmer 609-290-4293

Nathan Colmer

609.290.4293

ncolmer@vandykgroup.com

The Van Dyk Group

12800 Long Beach Blvd

Beach Haven Terrace NJ 08008

609.492.1511