Downbeach Homeowners Face Higher Insurance Costs and Elevations

New Jersey just passed a law that requires rental property owners to file a copy of their liability insurance. You must prove that you have hazard insurance. Fines for non-compliance can be up to $1,000.

At the recent Margate Commissioners meeting they discussed who’s going to enforce that law? The state or the municipality?

Listen to audio from Oct 20, 2022 Margate Commission Mtg. City Solicitor John Scott Abbott, explains:

I don’t know why someone wouldn’t have this insurance anyway, but now you just have to prove that you have it.

Each municipality is going to have their own mechanism for getting that proof of insurance before a certificate of occupancy (C/O) is awarded.

New NJDEP, Department of Environmental protection regulations coming December 2022.

New rules could go into effect by mid 2023. Bigger insurance rates & higher elevations.

What about those building a new home right now? They’re not compliant?


You have all these new homes getting built at the older standard?

Abbott: You have 21 new homes. Six months from now, they’re not going to meet the new requirements. Guess they’ll get penalized on their flood insurance, if they’re not at minimum elevation requirement.

How will they penalize people that have not complied? If you don’t meet the required flood elevation, you’ll pay extra for flood insurance because you’re a foot or two off.

FEMA is broke. Especially after the catastrophic event in Florida.

There’s some urgency to do this. It’s crazy that people build brand new homes, and then in a month or six months, they’re non-compliant. Especially the ones elevating the minimum standard.

Abbott wants to study this and will have a recommendation for the next Margate Commission meeting.

Abbott: Maybe we could talk to NJDEP and see what’s it going to be. So we know what to do. We don’t want to see brand new homes not being compliant.

Sherry Lillienfeld of EXP REALTY: How will they handle this? If you had permits to build and you were in compliance, then all of a sudden? We don’t have control over FEMA. It’s hard to keep chasing those changing regulations

Sherri Lilienfeld: On this barrier island of Longport. Margate, Ventnor and Atlantic City, there’s different heights. If you remember Sandy. The flooding came from the back bay. It didn’t come from the ocean side. Atlantic Ave is elevated higher than Ventnor Ave. After a rainstorm, Ventnor Ave is flooded. Atlantic Ave is not.

Congressman Frank Lobiondo: The damage we suffered (from Sandy) was not from the ocean side. It was from the back bay.

Insurance is skyrocketing everywhere. It’s painful. If you’re part of a condominium association, that insurance goes up 25%. Your personal insurance goes up 25%. Your HOA fees go up. Your personal insurance goes up. It’s very challenging.

The DownbeachBUZZ Real Estate Webcast. All things real estate from Margate, Ventnor and Longport. Sponsored by Exp Realty, Apex Prime and Guaranteed Rate.


1 thought on “Downbeach Homeowners Face Higher Insurance Costs and Elevations”

  1. between my primary home and my second home down here, cant keep up with whats going on. wont be submitting anything!

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