Flood insurance is a requirement for any home that has a mortgage and is located in a flood zone. It is recomended for any home that is at risk for flooding as the cost to repair flood damage is usually not covered by a hmoeowner's insurance policy. Contrary to what many people believe, most flood insurance policies are very affordable and those that do have high preimums may have some affordabel options availabel to them which can reduce the cost of flood insurance in the Southern Ocean County real estate market.
It is imporant to be aware of the areas that are at risk for flooding and therefore shoudl have a flood insurance policy. Generally speaking, the areas of the following towns will need flood insurance. Buyers in the local real estate market should account for this added costs in certain parts of the following areas:
The cost of flood insurance is determined by four major areas. They are:
Elevation is perhaps the most widely known (and least understood) area of the new flood insurance laws. The common misconception that, "all homes need to be raised" could not be further from the truth. Flood insurance looks at the first floor elevation above sea level and this elevation is determined by combining the natural ground elevation with the elevation of the foundation. If the ground elevation is already 2-4 feet above sea level, then the foundation needs to be only 4-6 feet and the new Base Flood Elevation is met.
The height of the crawlspace grade is another area that impacts flood insurance rates. A flood elevation certificate will note the height of both the grade of the crawlspace and the grade of the property. If the grade is lower in the crawlspace than the rest of the property, flood insurance will cost more money. The grade of the crawlspace can be raised and this will produce a savings in flood insurance.
Flood vents too have an influence on the rates of flood insurance in the Southern Ocean County real estate market. To conform with currently flood codes, there should be 1 sq. inch of flood vent for every 1 sq. foot of enclosure. There are additional discounts for "smart vents" which are designed to open or close with the water pressure.
Lastly, the property's flood zone has an impact on the insurance rates. An A flood zone, which is the most common in the Southern Ocean County real estate market, allows for lower flood insurance rates and more freedom in design and construction. A V flood zone is considered to be of a greater risk (to qualify to be in a V zone a house must be at risk to sustain direct impacts of a 3 foot wave). V zones must be built on a foundation system that allows for breakaway walls and will see an increase in premium if more than 300 sq. feet of the area below the house is enclosed.
If you are looking to buy or sell in the real estate market, or anywhere that is at risk for flooding in Southern Ocean County, it is important to understand how the costs of flood insurance will impact your investment. Every property is different with different factors that play into the premium and therefore every house must be investigated before buying or sellingin the local real estate market. The best way to determine a property's rate is with a flood elevation certificate which can provide the general information needed to generate an informed decision.