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Thanks everyone for all the input. I would love to buy on Pleasure Island. In doing some research, I am coming across horror stories about the flood insurance rates. What's the real deal? What are some realistic rates? I know it depends on so many factors, but if it's in the 10-20 thousand dollar range, then I'm out. How do I find out without having a specific property in mind? I've seen some new construction that looks super nice, anybody know anything about these areas or how fast/slow properties are going currently? Do you think the inventory will stay more or less the same a month from now? Thanks for any help! I'm researching as much as I can online, but appreciate your opinions!
there's no simple answer. flood insurance rates are a hot topic right now in congress. Google:
I believe your homeowners insurance rates will vary based on your proximity to the ocean and your wind zone. All of the Wilmington area is close proximity to the Ocean...and I believe all of it is in Wind Zone II. Wind Zones are typically used for manufactured home construction purposes, but I believe insurance rates in general are higher in higher wind zones....which is somewhat what the "Coastal plan" is all about.
In terms of flood insurance. Don't touch a property that is not compliant (with the local floodplain ordinance) with a ten foot pole. The Bigger Waters act basically was set to significantly increase rates ON NON COMPLIANT PROPERTIES. It has recently been repealed (like a few weeks ago), but in the meantime rates have increased some. This mostly applies to pre-FIRM properties (usually built before 1983). Flood insurance rates are not supposed to go up on compliant properties.
So, if looking on Pleasure Island, it is really specific to the house. A quick scan of an elevation certificate will tell you whether or not the property is compliant. If the realtor is not able to produce an elevation certificate on a property in the floodplain, my advice would be to walk away from it. If you are looking on the Island, I would request your realtor to have a copy of the flood map with you to see if the property is in the floodplain. In general terms newer construction should be compliant HOWEVER, many homeowners have made ground floor improvements since the house was built, which may have now put the property out of compliance, unless modifications are made. In terms of what to expect, I know a family near Pleasure Island that is in the floodplain, in compliance and their flood insurance is $2,100 a year on a very valuable property (over half million).
Understand that your flood insurance will be high and will increase every year. Increase is part of recently based bill by Congress. I think the increase will be 18% per year. (for those who don't understand compound interest...it will double every 4 years). There is also the risk that another congress will undo the recently passed bill, which will lead to very expensive insurance. You need to do some research on this to understand the possible risks.
Understand that your flood insurance will be high and will increase every year. Increase is part of recently based bill by Congress. I think the increase will be 18% per year. (for those who don't understand compound interest...it will double every 4 years). There is also the risk that another congress will undo the recently passed bill, which will lead to very expensive insurance. You need to do some research on this to understand the possible risks.
Those increases were starting to take effect...but have now been repealed. And it's only on NON COMPLIANT properties. Flood insurance rates were NOT rising on compliant properties (like a house built on stilts).
It's a bit of a moving target, but the best practice if you buy in the floodplain is to buy a compliant property.
Thanks to all! Your replies are helping me so much with my research and knowing what to ask the realtors. It can be difficult trying to prepare for buying a home long distance and I appreciate everyone's input.
I love Pleasure Island but if I had to commute to Wilmington every day the drive
would soon get to me. Pleasure Island has really grown the last five years, I think mainly due to
there being no affordable housing in Wrightsville Beach , those are really the only two
beaches close to Wilmington. Parking at WB is getting very costly [ good way to keep commoners away]
and Carolina Beach has been reaping the benefits of increased visitors and year round inhabitants.
This has brought many new businesses and a new , more vibrant feeling to the island.
Good grocery stores are important to us, easy access to galleries and music also important,
restaurant choices , therefore we found it easier to live in Wilmington proper than on Pleasure Island .
Visiting will really be the best way to see and feel if Pleasure Island is a good fit.
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