Flood Insurance
Long Beach Island will be facing nor’easters, hurricanes, and winter storms. Tidal flooding is a real concern and all homeowners should have flood insurance. For more information on the National Flood Insurance Program call 1-800-427-4661. For an agent in your area call 1-800-720-1093 or visit http://www.floodsmart.gov. Flood insurance is available to all Borough residents and renters even if the property has been flooded in the past. Flood Insurance Rate Maps (FIRM's) are on file in the Borough's Building Department. For a determination of your flood zone, or for a personal consultation on flood mitigation and retrofitting of your flood prone home please call 609-361-6016. |
National Flood Insurance Program (NFIP) Harvey Cedars participates in the National Flood Insurance Program (NFIP), which makes federally backed flood insurance available for all eligible buildings in the floodplain. Flood insurance covers direct losses caused by surface flooding, ocean or bay flooding, and local drainage problems. The NFIP insures buildings, including mobile homes, with two types of coverage, Building and Contents. Building coverage is for the walls, floors, insulation, furnace, and other items permanently attached to the structure. Contents coverage may be purchased separately, if the contents are in an insurable building. Inventory your house contents and take photos of every room for future claims. |
Mandatory Purchase Requirement The rule applies to secured mortgage loans from such financial institutions as commercial lenders, savings and loan associations, savings banks, and credit unions that are regulated, supervised, or insured by Federal agencies such as the Federal Deposit Insurance Corporation and the Office of Thrift Supervision. It also applies to all mortgage loans purchased by Fannie Mae or Freddie Mac in the secondary mortgage market. Federal financial assistance programs affected by the laws include loans and grants from Agencies such as the Department of Veterans Affairs, Farmers Home Administration, Federal Housing Administration, Small Business Administration, and the Department of Homeland Security’s Federal Emergency Management Agency (FEMA). |
How It Works If the building is in a SFHA, the Federal agency or lender is required by law to require the recipient to purchase a flood insurance policy on the building. Federal regulations require building coverage equal to the amount of the loan (excluding appraised value of the land) or the maximum amount of insurance available for the NFIP, whichever is less. The maximum amount available for a single-family residence is $250,000. Government sponsored enterprises, such as Freddie Mac and Fannie Mae, have stricter requirements. The mandatory purchase requirement does not affect loans or financial assistance for items that are not covered by a flood insurance policy, such as vehicles, business expenses, landscaping, and vacant lots. It does not affect loans for buildings that are not in a SFHA, even though a portion of the lot may be. While not mandated by law, a lender may require a flood insurance policy, as a condition of a loan, for a property in any zone on a FIRM. If a person feels that a SFHD form incorrectly places the property in the SFHA, he or she may request a Letter of Determination Review from FEMA. This must be submitted within 45 days of the determination. More information can be found at the following link: http://www.fema.gov/how-request-flood-hazard-determination-review-fema |