Flood Insurance and Elevation

This information is relevant with anticipated changes to the federal flood insurance program.  Homes currently “grandfathered” because they met the elevation code when built in the 80s and 90s, may now be rated differently.

 Post from February 2020:

The regulations regarding elevation play a major role with an owner’s plan to either renovate or build new.

A Flood Elevation Certificate is needed to determine the official elevation of both the land and the first floor living area.  For example, “curb” elevations on the island range from 5 feet above sea level to just over 12 feet.   The island may seem flat, but the subtle inclines exist!

Obviously a home with a lower curb elevation will need to be higher off the ground to meet code.

Now back to the charming beach cottages.  A lender will require flood insurance which is calcuated on the elevation.  If the home meets code, the annual premium will be approximately $900.  If the structure sits too low, the premium could be as high as $5500.

When a major renovation is planned, the municipality will require the structure to be brought up to code.

At this point, a property owner can compare the cost of lifting/renovating their home, or building new.

If the lot is undersized and/or the structure is larger than would be permitted today, lifting may be the best option to retain livable square footage.

If you have any questions regarding local real estate, I am here to help!  609-967-7950

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