Flood insurance
Flood insurance is crucial to understand and in most cases it is recommended to obtain a policy. To many people’s surprise rates are reasonable relative to property values and the fact that we are located between the Atlantic Ocean and Barnegat Bay. There are key factors that play into flood insurance rates and multiple options when obtaining a plan.
There are four main factors that determine flood insurance costs.
Base Flood Elevation (BFE): BFE is the elevation above sea level that a property is recommended to be built to. Insurance companies compare BFE to the lowest level of a structure. If the lowest level of your home is 2–3 feet above BFE, your flood insurance premium will be lower than if it was even with or below BFE. This is the greatest factor in determining flood insurance costs.
Flood zone classifications: Most properties fall into the A, AE, or V flood zones. There is also an “X” flood zone that is rare but may allow you to skip carrying a flood insurance policy because there’s a lower likelihood of an annual flood in these locations. A and AE zones are the most common on Long Beach Island and tend to be less expensive than the “V” zone. The “V” zone is generally designated to waterfront properties because FEMA states that homes in this zone can sustain a direct impact from a 3-foot swell or higher.
Foundation type: The material of the foundation such as solid block or breakaway walls will affect flood insurance costs. Basements or below grade crawl spaces can also lead to higher premiums.
Flood vents: For homes in the A and AE sections, a home can be built on solid concrete block, but the number of flood vents installed will factor into the cost. The more flood vents there are, the lower the rate.
Elevation certificates
An Elevation certificate documents important features of your property, including its location, flood zone, building characteristics and, most importantly, the elevation of its lowest floor. A survey company is needed to complete the document and but can be turned over quickly. If you are going to purchase a property ask to see the current certificate but be aware that there may have been updates made since the last certificate was sent out. Do not rely entirely on an old elevation certificate.
Flood insurance costs
As discussed, the cost of flood insurance depends on several factors. Most properties have a flood insurance plan that costs less than $2,000 per year. Homes below base flood elevation may see rates of $2,700 per year or more.
Key factors in determining flood insurance costs
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