TOO GOOD TO BE TRUE:
What's the oceanfront "dune line" look like?
If you're not on a stable 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.
Here's one area where
fair market values may be skewed by these factors.
Know this before you start to look!!
1. EROSION MAPS: (needs
small load time)
 View
all EROSION MAPS 2 MB
- before and after
aerials of Hurricane Irene - August 2011
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 (see
example of where to look). 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, flood insurance can be cost
prohibitive in the 4WD area! Call for further insight.
4. FLOOD ZONES BY ADDRESS:
Click Here
(Red roof home top-center of page)
1. Click on the home icon at top center of
page.
2. Enter the address number and the first word of the address
(plus the zip code or city)
3. On the drop menu for layers (lower-left
window) select “Flood Hazards – Other
Zones” (you may need to click on the "i" icon towards the top
to display this box initially)
4. Click on the orange star indicating property location & wait
for left window to update.
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.
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.
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 coverage
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