Beachside Home Insurance (Indialantic: for sale, real estate, oceanfront)

[Raddler]

Hello all. I'm looking for a few real world examples. We're moving to the area and having a hard time budgeting for a home with this huge unknown in the equation. Every time I try to research it I end up more confused. I realize there are many variables but for those of you that live beachside, could you please share how much you pay for home insurance. The numbers I get from research vary so greatly they are practically useless. Please help...thanks!!

[chopchop0]

On the actual water or not?

[Raddler]

Originally Posted by chopchop0

On the actual water or not?

Both if you know...or specify if you don't. Some of the houses with canal in the back yard hit the high end of my budget, so the price of the insurance will determine where we end up. Thanks!

[chopchop0]

Originally Posted by Raddler

Both if you know...or specify if you don't. Some of the houses with canal in the back yard hit the high end of my budget, so the price of the insurance will determine where we end up. Thanks!

Direct water frontage will significantly increase your rates since much of it is in the high-risk flood zone. I've heard of $17-18K on nice homes on the intercoastal. I also know of moderate homes not on the water, but on the peninsula with $6K insurance.

[sware2cod]

it depends on the FEMA flood map for that property. Homes near the water generally have a higher FEME required elevation...but this also can include landlocked homes that are 1-2 blocks from the water.

To determine flood insurance you need to know 3 basic things:
1) the FEMA flood zone for the exact part of the land that the home is built upon (flood zone could possibly be different in a back corner of the land, for example). Get from FEMA flood maps. Flood zone examples: V, A, AE, X, A10

2) the FEMA required Base Flood Elevation (BFE) for the portion of the lot where the home sites. For example, 10 feet. This means the home's lowest living floor must be 10 feet elevation above sea level, or higher. Get from FEMA flood map. Sample FEMA required BFEs: 10ft, 11ft, 12ft, 13ft, 15ft.

3) the actual elevation of lowest floor of living for the home. A surveyor measures and puts this on the official document called the Elevation Certificate. If it's a 2 story with the lower area designated 'non living", then the top floor is deemed the lowest living area. sample elevation certificate..document for actual lowest floor living: 14.5', 11'.


If the home's actual elevation is "at or above" FEMA's required evevation, then insurance generally is cheaper. If the home is "below" FEMA's required elevation, the insurance is likely to be sky high.

There is also the issue of V-Zones. These are usually direct beach front or direct bayfront or close to beach/bay. V means velocity and it means FEMA maps designate that 4' of waves could occur on this property in a storm event. There are certain additional building requirements for homes in V zones.

It's possible to have a direct waterfront home (canal, etc) with very low flood insurance rates if the actual elevation is well above BFE and if home is built to FEMA specs, etc. Flood insurance is possible to be under $500 for such home. Don't automatically assume flood insurance will be high if waterfront. If might be or might not be.

You must get an insurance quote for every single home you are considering. You need to know the actual elevation (from elevation certificate) to get the quote. The insurance agent will look up flood zone and required BFE based on the address.

[jghorton]

We've been in oceanfront condos over the past 10+ years, so the specific numbers are irrelevant (The overall condo insurance went up about 30-40% in 2004-2005 following the last round of storms).

Beyond the high cost of flood insurance, you need to watch-out for per event, storm-related deductibles. One can easily wind-up paying 3-4% of the ENTIRE value of the property in deductibles, before the insurance kicks-in. Except for a catastrophic event, it's almost like being self-insured.

[chopchop0]

Take a peek at retinkered FEMA flood zone maps | wtsp.com

[chopchop0]

Originally Posted by jghorton

Beyond the high cost of flood insurance, you need to watch-out for per event, storm-related deductibles. One can easily wind-up paying 3-4% of the ENTIRE value of the property in deductibles, before the insurance kicks-in. Except for a catastrophic event, it's almost like being self-insured.

Very good point. 2% hurricane deductibles are pretty much the norm now.

[Raddler]

Thanks, sware2cod...very helpful info. I can't imagine there are many (if any) beachside homes that are above 10ft elevation. We drove around the majority of the area and didn't notice a single house that looked like it had be raised up.

Originally Posted by sware2cod

You must get an insurance quote for every single home you are considering. You need to know the actual elevation (from elevation certificate) to get the quote. The insurance agent will look up flood zone and required BFE based on the address.

How do I get to see this elevation certificate? Do real estate agents have this information? I've also been told that the difference between insurance companies can sometimes be double so it's important to shop around. Is this true? How can I "shop around" for insurance if I'm considering 5-10 different properties.

Also, are the only insurance companies willing to insure these properties the ones that work through the national flood insurance program?

[Raddler]

Also, does anyone know how accurate the national flood insurance site is? For example sometimes it will give an actual estimate, sometimes it doesn't...not sure why. I picked a random house that was for sale on Zillow in Indiatlantic and put in the address. It was a moderate to low risk and the estimated premium was only $129-$460. See link below. I thought that seemed low. However, this is just flood correct? And my regular home insurance won't cover flood correct? Is hurricane insurance included with my regular home insurance?

This is what always happens as soon as I start researching it gets complicated. It shouldn't be so difficult to figure this out.

Error