Know the Facts or Know Nothing!

 

National Flood insurance (provided by FEMA) is undergoing going major changes.  If you do not fully understand the rules you could we wasting alot of time focusing on the wrong properties.

Outer Banks Foreclosure Homes

 

Outer Banks Foreclosures aren't always a good deal. Matter of fact there is only a fraction of foreclosures on the market when compared to 5 years ago.  There are also signs indicating a market rebound.

TOO GOOD TO BE TRUE: So what's the oceanfront "duneline" look like?  If you're not on a stable beach it will affect your insurance expense, abilty to rebuild, and whether or not you can occupy the home if you lose your septic system.  Where there are high erosion rates, you will find "too good to be true" properties.  If you could fish off the back deck, or you can see the ocean from the ground floor of the house, be aware.   Know the impacts of flood zones, erosion, and insurance rates.  These variables in purchasing Outer Banks property can dramatically affect prices.  Know the basic facts of barrier islands before you start to look!! 

1. EROSION MAPS: (needs short load time)   View all EROSION MAPS 2 MB  

2. INSURANCE COSTS:  A good way to get a handle on insurance related costs is to look for the flood zone in the "details" section of each MLS listing.  X flood zones do not require insurance for a loan.  AE Zones are generally inexpensive, when compared to VE & Cobra Flood Zones.  Some flood zones are cost prohibitive with respect to insurance costs where other VE Zones are grandfathered into AE rates.

  3. LOMA (4WD AREA):  A Letter of Map Amendment (LOMA) is an official amendment, by letter, to an effective NFIP map. A LOMA establishes a property''s location in relation to the Special Flood Hazard Area (SFHA). LOMAs are usually issued because a property has been inadvertently mapped as being in the floodplain, but is actually on natural high ground above the base flood elevation.  Unless a property is in an X Flood Zone, or has a LOMA, the flood insurance can be cost prohibitive in the 4WD area!  Call for further insight.

4. FLOOD ZONES BY ADDRESS:  search flood zones

1. Click on the search icon at top center of page.
2. Enter the address number and city - example: 123 Street, Kitty Hawk

Common Flood Zones:  AE  -  VE  -  C  - X  (no flood insurance req. for loan)

5. SOCIO-ECONOMIC FACTORS:  Bonner Bridge Replacement (Oregon Inlet) Highway 12 access during storms and periods of high winds. Nags Head Beach nourishment  Mid-Currituck Bridge (Corolla)  Southern Shores Canal Dredging Project

You cannot bind an insurance policy when a hurricane is inside this designated "box".  This can change your closing date.

What is the BEACH Plan in North Carolina? Its statutory name is the North Carolina Insurance Underwriting Association, and it is an association which, as agents for the member companies, functions like an insurance company, making basic and broad property insurance available to people who are not able to buy it through the standard insurance markets..

The Beach Plan was created in 1969 to cover only those barrier islands adjacent to the Atlantic Ocean..

In 1998, the Beach Plan was expanded by the NC General Assembly to include the eighteen (18) coastal counties (called the Coastal Area) for Windstorm and Hail Insurance Only coverage. The plan was authorized to begin offering Homeowners Insurance Policies for principle residences effective July 1, 2003 for all 18 coastal counties..
What Coverage is available under the Beach Plan? For principal residences the Beach plan issues Homeowners Insurance Policies for eligible properties according to rules approved by the Commissioner of Insurance. The terms and conditions of those policies including the coverage forms are according to Underwriting Guidelines also approved by the Commissioner..

Basic coverage is provided in the Dwelling Property 1 Basic Form (DP-0001) for one to four (1-4) family residences. For Commercial Properties, Basic coverage is provided under the Standard Property Policy (CP-0099). Those policies protect buildings against such hazards as fire (including damage by lightning), wind, hail, explosion, smoke, damage by vehicles or aircraft, vandalism and malicious mischief..

Broad coverage is available for residences under the Dwelling Property 2 Broad Form (DP-0002). For Commercial Properties, Broad Form is endorsed to the Standard Property Policy by the Optional Perils Form (PF-0002)..

Dwelling Form Broad coverage's include additional hazards of damage by burglars; falling objects; weight of ice, snow or sleet; accidental discharge or overflow of water or steam; sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water system, an air conditioning or automatic fire protective system, or an appliance for heating water; freezing of plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance; sudden and accidental damage from artificially generated electrical current; volcanic eruption..

The Commercial Optional Perils Form provides the additional perils of::
breakage of glass; falling objects; weight of snow, ice or sleet and water damage (meaning accidental discharge or leakage of water or steam as a result of the breaking or cracking of any part of a system or appliance containing water or steam, other than an automatic sprinkler system). There is also additional coverage for collapse..

It is important to note that these are general coverage descriptions and the provisions and language of any specific policy would provide the exact coverage including conditions and exclusions, pertaining to an individual insured property..

The Plan also provides a Windstorm and Hail Only policy written in conjunction with a fire insurance policy, that is written by a private, licensed insurance company..

Normal coverage is provided on Actual Cash Value basis, however Replacement Cost Coverage may be provided, when specifically requested, on eligible buildings that meet our Replacement Cost guidelines..

Business Income coverage will be available for commercial risks. The maximum per risk limit available is $300,000..

Travel Trailers affixed to real property located in the each Area may qualify for coverage through the Beach Plan..

Limited classes of manufacturing risks will be eligible providing they meet occupancy and underwriting standards..

Up to $1,500,000 of protection is available on private dwellings and $3,000,000 on commercial properties (excluding automobile risks.))

The Beach Plan also offers a crime policy that provides burglary and robbery protection..

The Plan does not write liability insurance, except for the coverage provided by homeowner policies for an owner occupied principal residence..

Beach Plan policies may be written for one or three years. Short-term policies may be written in special circumstances approved by the Commissioner of Insurance. Continuation of coverage requires an application and an underwriting review. Three year policies are normally adjusted (re-rated) annually. Continuation of coveragee

before and afterr aerials of Hurricane Irene - August 20111