Looking for property near the ocean? With more than 300 miles
of ocean shoreline, North Carolina boasts some of the most spectacular
beaches in the nation. But
before buying, you should be aware of other factors that accompany the pleasures
of owning property at the beach.
Most oceanfront real estate in North Carolina is located on one of the state's
many barrier islands. These narrow strips of land between the sea and the sound
are particularly vulnerable to ocean forces such as storms and beach erosion,
which can pose a threat to your prospective property and undercut its value.
This brochure focuses on basic questions you should ask as a potential purchaser
of coastal real estate. Whether you are considering an undeveloped lot or an
existing building, there are critical issues you should examine before committing
to purchase. For more information, refer to the list of sources at the end of
this write-up.
Q: What unusual hazards can affect real estate along ocean shorelines?
A: The greatest difference between real estate adjacent to
the ocean or an inlet and inland real estate is the hazard of shoreline erosion.
For inland real estate,
property lines are generally unchanging. However, property on the oceanfront
or adjacent to an inlet has a moving property line along the shore that is
determined largely by the forces of nature. This moving boundary, called the "mean
high water line," can change from day to day.
Q: What causes shoreline erosion?
A: Shoreline erosion is caused by a variety of factors. Along the oceanfront,
hurricanes, northeasters and other storms cause seasonal fluctuations of the
beach.
As a general rule, North Carolina's beaches erode more in the stormy fall and
winter months than in the calm summer months. It is not unusual for the mean
high water line more landward temporarily by 75 to 100 feet during the stormy
season. Of course, when a barrier island is hit directly by a hurricane, beachfront
erosion can be even more dramatic. Inlets are also affected by seasonal storms
and can change configuration rapidly and severely as tremendous amounts of
water and sand flow through them. In severe storms, it is even possible for
new inlets
to form and existing inlets to close. Erosion associated with storms is often
severe because large quantities of sand can be moved quickly offshore from
the beach and dunes. This type of erosion is usually called "short-term" because
the shoreline can return to its original profile as conditions calm.
Q: Do North Carolina's ocean beaches experience "long-term" erosion?
A: Yes. Long-term erosion, often called "beach migration" is
generally associated with rising sea levels. The ocean has risen about 6 inches
during
the last century, causing North Carolina's barrier islands to migrate landward.
Although this process can cause erosion along the entire oceanfront, areas
adjacent to inlets are often the most profoundly affected. Some "migrating inlets" are
constantly moving in one direction. Others may stay in the same general location
but expand and contract constantly. These inlets are often called "breathing
inlets."
In addition to its natural causes, erosion can be set in motion by human activities.
For example, a jetty constructed to stabilize an inlet or a structure built to
stabilize a beach can trap sand on one side but increase erosion on the other.
Such erosion will continue until the structure is removed or the beach adjusts.
Q: What is the typical erosion rate of a North Carolina shoreline?
A: Studies by the NC Division of Coastal Management show an average long-term
erosion rate of 2 to 3 feet annually for the entire coast over the last 50 years.
However, the annual erosion rate is more than 20 feet for some shoreline areas,
while others have been relatively stable. Ocean shorelines near inlets and inlet
shorelines usually experience the greater fluctuations.
Oceanfront property is also subject to seasonal storm-related
fluctuations that can result in short-term erosion
of between 75 and 100 feet. Although most of
this erosion is temporary, some land area lost to storms may not return.
[For information on erosion rates, contact the Division of Coastal Management
or the local building official in the jurisdiction where you plan to purchase
or build. There are also a few private companies that analyze shoreline hazards
for a fee.]
Q: Will I automatically be informed about erosion and erosion rates?
A: Not necessarily. Although the original developers of oceanfront property
are informed of erosion hazards when they apply for a building permit, North
Carolina
law does not specifically require that the information be disclosed to subsequent
buyers. Purchasers should be sure to research coastal hazards.
If you are working with a licensed real estate agent, the agent has a duty
to disclose material facts that the agent knows or reasonably should know.
Although
real estate agents may not always know the erosion rates for particular oceanfront
properties, they should advise you of the possibility of erosion and direct
you to available sources of information. If the agent knows the erosion rate
of a
particular property, the agent must disclose it to you.
Q: If I purchase undeveloped oceanfront property, where should I
build on the lot?
A: North Carolina requires that new construction be a certain distance from
the ocean. However, because the state's ocean shoreline is volatile, it may
be in
your best interest to build farther landward than the minimum distances allowed.
The Coastal Area Management Act (CAMA) authorizes the Division of Coastal
Management to establish oceanfront setback lines for all developers. The
setback is measured
landward from the line of stable natural vegetation nearest the sea, usually
near the base of the frontal dune system. All single-family homes and buildings
of 5000 square feet or less, and their septic systems, must be located 30
times the historical, long-term erosion rate from this line, with a minimum
setback
of 60 feet. For example, if the long-term erosion rate is 3 feet per year
for the shoreline of a particular lot, then the setback would be 90 feet
(3 X 30)
from the first line of vegetation. For large buildings (over 5,000 square
feet), the setback is 60 times the long-term erosion rate or 30 times the
erosion rate
plus 105 feet, whichever is closer to the ocean. For such structures, the
minimum setback is 120 feet.
Other requirements may also apply. Local building officials are familiar
with these and can locate the minimum setbacks on your lot.
Please note that the required setback does not guarantee a safe location.
In fact, it implies that if erosion occurs as expected, a building could
be destroyed
in 30 years - or about the time the structure is paid for under a traditional
30-years mortgage. If possible, it is generally wise to build well landward
of the state's minimum setback requirements.
Q: What building construction features help reduce or prevent storm damage?
A: Several features can prevent or substantially reduce the likelihood of
damage from severe storms or erosion. Pilings can raise the first floor above
expected
flood elevations and waves. Embedding the tip of pilings deeper than five
feet below sea level can help a building stand during severe erosion. Any
walls constructed
between pilings should be designed to break away when hit by waves to prevent
damage to the elevated portion of the building. Finally, the roof should
be secured to the remainder of the building with corrosion-resistant hurricane
straps.
Sand dunes also provide significant protection during the most severe storms.
You can protect and enhance frontal dunes by keeping vehicles and people
off these areas, planting additional dune grasses, and installing sand fences.
Keep
in mind, however, that dunes protect against short-term erosion caused by
very severe but infrequent storms and offer little protection from long-term
erosion.
Q: If my oceanfront property becomes threatened by erosion can I:
(1) Construct a seawall?
A: No. Seawalls, bulkheads, revetments, groins, jetties or breakwaters are
not allowed along the beaches of North Carolina. These "hard" erosion-control
devices can damage the beach and adjacent properties. If a building is severely
threatened by erosion, the property owner may apply for a permit to place
sandbags or build artificial sand dunes with bulldozers to allow more time
to move or
relocate the building. Both are temporary measures and require permits from
the Division of Coastal Management. A sandbag bulkhead must be removed within
two
years and may be constructed only once per oceanfront lot, even if ownership
of the lot changes.
(2) Replenish the eroding shoreline by pumping sand from an outside source
onto my property?
A: Yes. Beach replenishment is allowed in North Carolina. However, it is
expensive and generally provides only temporary relief. Also, to be effective,
it must
extend beyond the beach in front of a single property and include long stretches
of ocean shoreline.
[For information on replenishment projects, contact your local building
official, the US Army Corps of Engineers or the NC Division of Coastal Management.]
(3) Move my house away from the eroding shoreline?
A: Yes. House-moving is an allowable and cost-effective means of getting
a structure out of harm's way. If space allows, a structure can be moved
landward on the
same lot; otherwise, it can be relocated to new property. Regardless of where
the building is moved, it must meet existing setback requirements. [Note:
As of 1993, new development permits for oceanfront structures require owners
to
move or dismantle buildings threatened by erosion; i.e., buildings that are
less than 20 feet from the line of stable dune vegetation nearest the sea.]
Q: Can I get insurance for damage resulting from erosion and flooding?
A: Maybe. You may be able to purchase a flood insurance policy which is usually
separate from a standard homeowner's policy. The National Flood Insurance
Program was established by Congress to make flood insurance available nationwide
to eligible
properties. Policies issued under the National Flood Insurance Program include
conditions and costs dictated by federal requirements. The federal government
in turn guarantees to pitch in if losses occur - thus encouraging private
companies to write affordable policies for areas that might normally be considered
too
risky. Large discounts on premiums are often available for buildings constructed
above minimum standards. For example, discounts are available for buildings
elevated on pilings higher than required to avoid storm-surge flooding.
If the property is not eligible for the National Flood Insurance Program,
the owner may be able to procure flood insurance coverage from a private
insurer.
However, private insurers regularly reassess whether or not to offer coverage,
and it may not always be available.
Q: Is flood insurance mandatory for coastal property?
A: No law requires that an owner buy or maintain flood insurance. Nevertheless,
federally insured lenders, including mortgage companies, banks and savings
and loan associations, require buildings to carry flood insurance for the
life of
their lien if the property is in a flood-prone area. Failure to maintain
coverage may permit the lender to declare the balance of the loan due and
payable.
Flood-prone areas are identified on Flood Insurance Rate Maps, which should
be available at the local building official's office. If your building is
not in
a flood-prone area or you haven't secured a mortgage to purchase your property,
flood insurance is optional. However, when building or buying near the ocean,
flood insurance is always a good idea, even if it's not required.
[For information about flood insurance and discounts, contact your local
building official, insurance agency, NC Department of Insurance or the federal
Flood Insurance
Program.]
Q: What are the limitations of flood insurance?
A: Federal flood insurance covers only structural damage-including damage
from waves-caused by flooding. As a rule, damage caused by chronic, long-term
erosion
is not covered. However, since most erosion that causes structural damage
is associated with coastal storms, coverage is often available.
Furthermore, a federally-backed flood insurance policy covers only damage
to the insured structure. It does not cover damage to land caused by flood,
wave
or erosion. And, it does not cover damage from other evens, such as hurricane-related
winds. These same limitation may apply to privately underwritten insurance.
When a structure is so badly damaged that it cannot be repaired or rebuilt,
an owner may receive all benefits under the flood insurance policy and discover
the coverage is inadequate to cover the cost of removing the structure and/or
repaying the loan. In addition, the value of any remaining land may decline
significantly
if the land is "unbuildable."
Q: Can I get insurance for wind damage to coastal property?
A: Many privately underwritten homeowner policies cover wind damage and water
damage caused by wind; e.g. wind damage to a roof resulting in leaks. However,
because of the high risk in coastal areas, some private insurance companies
are excluding coverage for wind damage. For that reason, the NC Department
of Insurance
has established an insurance pool known as the "Beach Plan" to
provide wind coverage in areas where it is not otherwise available.
[For more information about the Beach Plan or homeowner's policy coverage,
contact your insurance agent or the NC Department of Insurance.]
Q: Can I rebuild or repair my structure if it is damaged by a hurricane or
other coastal storm?
A: It depends upon the extent of the damage. If damage is less than 50 percent
of the building's value, you may be able to repair it at its original location.
But if the building is more than 50 percent damaged, repairs are considered
substantial and must meet both new setback requirements and other new building
code requirements.
Rebuilding is prohibited if erosion has left insufficient space on the lot
to construct landward of the setback.
Additional Information:
- NC Sea Grant Coastal Construction and Erosion Specialist
NC Aquarium/Fort Fisher
P O Box 130
Kure Beach NC 28449-0130
(910) 458-5780
- NC Sea Grant Coastal Law Specialist
Box 8605
North Carolina State University
Raleigh NC 27695-8605
(919) 515-2454
- NC Division of Coastal Management
P O Box 27687
Raleigh NC 27611-7687
(919) 733-2293
- NC Real Estate Commission
Legal Division
1313 Navaho Drive
P O Box 17100
Raleigh NC 27619-7100
(919) 875-3700
- NC Department of Insurance
For general information: 1-800-546-5664
"Beach Plan" information: 1-800-662-7048
- National Flood Insurance Program
1-800-638-6620
- Local Building Officials
Call the county tax or municipal building for the area in which you wish to
develop.
- US Army Corps of Engineers/Wilmington Branch
P O Box 1890
Wilmington NC 28402-1890
(910) 251-4455
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