Buying a beach home
Buy on the Coast With Your Eyes Open
Flood zones, wind and flood insurance, rental rules and coastal inspections, in the order a beach purchase actually happens.
A beach home is still a home, so the path starts the familiar way: a budget, a loan and a search. The coast adds a few steps that belong before the offer, not after it. A local real estate agent who knows the beach towns can help you price homes by distance to the water.
Look up every address on FEMA’s flood map and get insurance quotes before you fall for a view. Read the town’s short-term rental rules and any association rules if renting is part of your plan, and ask for an inspection that looks under the house at the pilings and connectors.
The tide table
Twelve Guides, in the Order You Need Them
Start with the buying steps, then flood and insurance, then the market. Each row is one short guide; switch topics to narrow the table.
Flood zone check
What Does the Zone on FEMA’s Map Mean?
Pick the zone letters for the address and whether it is inside the Coastal Barrier Resources System. You get what that means for your loan and your flood insurance.
1Which zone does FEMA’s map show for the address?
2Is the address inside the Coastal Barrier Resources System?
Find the zone on FEMA’s flood map for the exact address. Not sure what you are looking at? Read Flood Zones Explained for Beach Home Buyers.
Pick a zone on the left to see what it means for your loan and your insurance.
Special Flood Hazard Area
A, AE, AH, AO, A1-A30, A99, AR
- FEMA defines this as the area flooded by the base flood, an event with a 1 percent chance of being equaled or exceeded in any given year.
- If you borrow from a federally regulated or federally backed lender, the law requires flood insurance on the building for the term of the loan, for at least the outstanding balance or the maximum coverage available, whichever is less.
- Lenders must accept private flood insurance that meets the same coverage requirements.
- For permits and insurance, the key height in A zones is the elevation of the lowest floor.
Special Flood Hazard Area, coastal
V, VE, V1-V30
- Coastal areas with a 1 percent or greater annual chance of flooding and an additional hazard from storm waves.
- FEMA puts the chance of flooding in these areas at 26 percent over the life of a 30-year mortgage.
- The same flood insurance requirement applies when you borrow from a regulated or federally backed lender.
- Here the key height is the elevation of the lowest horizontal structural member, the bottom of the beams that hold the house up.
Outside the Special Flood Hazard Area
B or X (shaded)
- FEMA’s moderate flood hazard: the area between the limits of the base flood and the 0.2-percent-annual-chance, or 500-year, flood.
- The federal purchase requirement for flood insurance applies only inside the Special Flood Hazard Area.
- Most homeowners insurance does not cover flood damage, so price a separate flood policy anyway.
Outside the Special Flood Hazard Area
C or X (unshaded)
- FEMA’s minimal flood hazard on the map.
- FEMA’s own words: floods can happen anywhere. Flood insurance is a separate policy and is available to anyone in a community that takes part in the National Flood Insurance Program.
- Maps are revised over time, so check the date of the map you are reading.
Coastal Barrier Resources System
- Outside the system, NFIP flood insurance is available wherever the community takes part in the program.
- Keep the CBRS Mapper Documentation that shows the address is outside; it can be used for real estate transactions and insurance.
Coastal Barrier Resources System
- Within the system, most new federal spending and financial assistance is prohibited, including NFIP flood insurance. Under 42 U.S.C. 4028 there is no new NFIP coverage for new construction or substantial improvements after the area’s prohibition date (October 1, 1983 for the original system).
- The same law says a federally insured lender may still make a loan secured by a building that cannot get NFIP coverage. Ask your lender early.
- Ask about private flood insurance, and keep the CBRS Mapper Documentation with your purchase papers.
Coastal Barrier Resources System
- Check the address with the CBRS Validation Tool in the U.S. Fish and Wildlife Service’s CBRS Mapper. It produces a document saying whether the location is in or out.
- Within about 20 feet of a boundary the tool will not decide; ask the Service for a CBRS Property Determination letter.
- A new NFIP policy typically takes effect after a 30-day waiting period; the wait does not apply when the coverage is bought in connection with making a loan.
- Ask the seller for the flood insurance declarations page and any elevation certificate, and whether the NFIP policy can be assigned to you.
How a beach purchase works
Five Postcards From the Coast
The five things that make buying at the beach different from buying inland, one card each.
Decide what the home is for
A primary home, a second home you visit on weekends and a property you mostly rent out are different purchases. They can mean different loans, different insurance and different rules from the town or the association. Settle the plan first and be honest with your lender about it.
Read the map before the view
FEMA’s flood map decides whether a regulated or federally backed lender must require flood insurance. Zones beginning with A and V are the high-risk Special Flood Hazard Area, and V zones add storm waves. Check the Coastal Barrier Resources System map too, because inside it new federal flood insurance is generally off the table.
Price insurance before you offer
Most homeowners insurance does not cover flood damage, so flood coverage is a separate policy, and wind coverage on the coast can carry its own deductible. Ask the seller for the declarations pages and any elevation certificate, then get your own quotes and add them to the monthly payment.
Check the rental rules
If renting is part of the plan, read the town’s rules on permits, minimum stays and occupancy, and any association rules, before you count on income. Rules can change, so make sure the home still works for you if rentals were restricted later.
Inspect for salt, water and wind
Ask for an inspection that goes under the house: pilings, bracing, corroded connectors, roof attachment, storm-rated windows and signs of past water. Book it the day your offer is accepted, and keep the report as your maintenance plan for the first years.
Questions
What Beach Buyers Ask
Do I have to buy flood insurance?
If the home is in a Special Flood Hazard Area and you borrow from a federally regulated or federally backed lender, yes: the building must be covered for the term of the loan, for at least the outstanding balance or the maximum coverage available, whichever is less. Outside that area it is not required by federal law, but most homeowners policies do not cover flood.
Does homeowners insurance cover hurricane flooding?
Usually not. FEMA notes that most homeowners insurance does not cover flood damage. Flood insurance is a separate policy that can cover the building, its contents or both.
How long does a new flood policy take to start?
A new NFIP policy typically takes effect after a 30-day waiting period. The wait does not apply when the policy is bought in connection with making, increasing, extending or renewing a loan.
What is Zone V?
A coastal area with a 1 percent or greater annual chance of flooding plus an additional hazard from storm waves. FEMA puts the chance of flooding there at 26 percent over the life of a 30-year mortgage.
Can I take over the seller’s flood policy?
FEMA says policyholders can transfer their discount to a new owner by assigning their NFIP policy when the property changes ownership. Ask the seller early and put it in your offer if it matters.
What is the Coastal Barrier Resources System?
A set of coastal barrier areas mapped under a 1982 law where most new federal spending is withdrawn, including new NFIP flood insurance for new construction and substantial improvements. The U.S. Fish and Wildlife Service’s CBRS Mapper shows whether an address is in or out.
Can I rent my beach home to vacationers?
It depends on the state, the town and any association. Towns may require permits, set minimum stays or cap rentals, and associations can be stricter than the town. Check before you offer and treat rental income as a bonus, not a certainty.
Should I waive the inspection to compete with cash buyers?
It is risky on the coast. An inspection contingency lets you cancel without penalty if you are not satisfied, and salt air, pilings and storm repairs are exactly what a standard tour misses. Shortening the inspection period is usually safer than removing it.