will all home purchases now have to be raised? will insurance be costly ?

Asked by Lynns720, Fri Feb 22, 2013

This question was asked from this property: http://www.trulia.com/property/3109296437-207-5th-Ave-Lavall…

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Mary Cericola, Agent, Lavallette, NJ
Mon Feb 25, 2013
The right answer is no and no. Or it depends... The rule adopted on Jan. 24 requires that new and major reconstructed structures must be elevated in accordance with the best available advisory flood mapping. The new maps will not be finalized for many months (perhaps 24 months) and the flood zones in place will apply to any purchase made in the immediate future. Owners/sellers have no legal obligation to elevate their home unless it was substantially damaged. That means the home had to be damaged at or over 50% of market value. Insurance rates may be an issue for homes and homeowners that have properties that are below the base flood elevation. Each situation will be unique and it will be necessary for you, or any potential buyer, to consult the experts prior to making a purchasing decision. The media is typically reporting insurance rates for V zones (high velocity wave action) when many of the homes at the beach will be in an A zone. My latest information has an A zone home, at 1 ft. above base flood elevation, with a cost of about $660 annually for coverage, excluding content coverage.
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I am Mary J. Cericola, Broker Sales Manager of Crossroads Realty located at 100 Grand Central Avenue in Lavallette NJ.
Flag Tue Feb 26, 2013
Leroy Gallman, Mortgage Broker Or Lender, PARSIPPANY, NJ
Fri Jan 3, 2014
I recently did a renovation loan on Carmel Dr for a client which includes raising the house. I can tell you the insurance was very reasonable and the buyer negotiated a great price for raising the house. I would agree each home is different, and I would be hapy to share more specifc details.
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Laura Gianno…, Agent, Manahawkin, NJ
Fri Feb 22, 2013
As you know the Advisory Base Flood Elevation (ABFE) have been adopted by emergency rule from the Department of Environmental Protection. This was ordered by Governor Christie.

However, many towns are advising homeowners to wait before rushing to raise their homes. The reason is that the ABFE's and the new Velocity zones do not take into account mitigation efforts, like bulk headings and beach replenishment.

If you're buying a home, please check the link below. You can enter an address and find out what the ABFE is and also the velocity zone.


If you have further questions regarding homes in Ocean County, at the Jersey Shore, please contact REALTOR Laura Giannotta.
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Valentina Ga…, Agent, sea girt, NJ
Fri Feb 22, 2013

If the zone was changed to more severe flood zone and the base elevation is not at that height then the insurance will rise unless you raise the home.

Almost all homes in the USA qualify for flood insurance through FEMA with 2 exceptions and they are very remote places I never heard of. The problem is the premiums for houses that are not at the base flood elevations mandated by the FEMA charts. The highest premium could be $31,000 but that is in areas where homes were completely devastated.

There are charts to show the base elevations on the new FEMA maps
go to http://www.region2coastal.com/sandy/table
This home had a Base 'Flood Elevation of 6 feet before the new advisory maps. This home was probably paying a small premium because it appears to be lower than 6 ft elevation from the picture.

The new advisory maps(which are not mandated yet but probably in 2013-14) show a ABFE of 10 feet. Meaning if Lavalette enforces the new advisory maps then you will need to either raise your home to 10 feet or pay a higher insurance premium. Oh and watch the height restrictions!! When you raise your home be careful not to go past height restrictions.

Good news is FEMA is giving up to $30,000 for primary homeowners to raise their house if they qualify. Bad news is trying to find a company to do it for that price.

Hope this helps
If you are not working with an agent give me a call and I can assist you.

Best regards,
Val Gabela
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