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 article 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 article.
Questions
Answers
What unusual hazards can affect real
estate along ocean shorelines?
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.
What causes shoreline erosion?
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 to move landward temporarily by 75 to 100 feet
during the stormy season. Of course, when an ocean shoreline 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.
Do North Carolina's ocean beaches
experience "long-term" erosion?
Yes. Long-term erosion can be caused by a variety of factors,
including 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 "oscillating 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.
What is the typical erosion rate of
a North Carolina shoreline?
Studies by the N.C. 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.]
Will I automatically be informed about
erosion and erosion rates?
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.
If I purchase undeveloped oceanfront
property, where should I build on the lot?
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 development.
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-year mortgage. If possible, it is generally wise to
build well landward of the state's minimum setback requirements.
What building construction features help
reduce or prevent storm damage?
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. In many areas, 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.
Elevating a building to protect it from storm surge and flood
increases its exposure to storm winds. The key to reducing storm wind damage
lies in the quality of the building's design and construction. For new homes on
the beach, consider employing a professional engineer to help ensure adequate
structural design. If buying an existing home, an engineer can help assess the
structure's strengths and weaknesses, and suggest modifications to make the
house more damage-resistant.
Modifications may include: addition of hurricane clips to improve
the roof's ability to withstand uplift forces of high winds; installation of
storm shutters to protect window and door openings from wind-driven rain and
debris; improved attachment of roof shingles; reinforcement of gable end roofs;
reinforcement of the attachment of plywood roof decking to roof rafters with
additional nails, screws or adhesives; and reinforcement of the attachments of
porches and decks.
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, and planting additional dune grasses. Keep in mind
that sand dunes protect against short-term erosion caused by very severe but
infrequent storms and offer little protection from long-term erosion.
If my oceanfront property becomes
threatened by erosion can I:
(1) Construct a seawall?
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.
(2) Construct temporary erosion-control
structures such as sand bags?
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 structure must be removed within two years and may be constructed
only once per oceanfront lot, even if ownership of the lot changes.
(3) Replenish the eroding shoreline by
placing sand from an outside source onto my property?
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.
(4) Move my house away from the eroding
shoreline?
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.]
[For information on site-specific erosion control projects, contact
your local building official, the U.S. Army Corps of Engineers or the N.C.
Division of Coastal Management.]
Can I get insurance for damage resulting
from erosion and flooding?
Possibly. 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 often
are 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.
There is a limit to single-family home coverage under the NFIP.
Owners should inquire about these limits. If the owner wishes to purchase
excess flood coverage, or if the property is not eligible for the NFIP, the
owner may be able to procure flood insurance coverage from a private insurer.
Private insurers regularly reassess whether or not to offer coverage.
Is flood insurance mandatory for coastal
property?
No law requires that an owner buy or maintain flood insurance.
However, federally insured lenders, including mortgage companies, banks and
savings and loan associations require flood insurance for the life of their
lien if the property is in an identified 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 agent, N.C. Department of Insurance or the
federal Flood Insurance Program.]
What are the limitations of flood
insurance?
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 events, such
as hurricane-related winds. These same limitations 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 declared "unbuildable."
Can I get insurance for wind damage to
coastal property?
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 N.C.
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 N.C. Department of Insurance.]
Can I rebuild or repair my structure if it
is damaged by a hurricane or other coastal storm?
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
N.C. Division of Coastal Management
1638 Central Mail Center
Raleigh, NC 27699-1638
(919) 733-2293
dcm2.enr.state.nc.us
N.C. Real Estate Commission
Legal Division
1313 Navaho Drive
P.O. Box 17100
Raleigh, NC 27619-7100
(919) 875-3700
www.ncrec.gov
N.C. 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 local county tax or municipal building
U.S. Army Corps of Engineers/Wilmington Branch
P.O. Box 1890
Wilmington, NC 28402-1890
(910) 251-4455
Authors
Walter Clark
North Carolina Sea Grant Coastal Law Specialist
Box 8605
North Carolina State University
Raleigh, NC 27695-8605
(919) 515-1895
walter_clark@ncsu.edu
www.ncsu.edu/seagrant
Spencer Rogers
North Carolina Sea Grant Coastal Construction and Erosion Specialist
5001 Masonboro Loop Rd.
Wilmington, N.C. 28409
910/962-2491
rogerssp@uncwil.edu
www.ncsu.edu/seagrant
This work was partially supported by grant NA46RGO087 from the
National Sea Grant College Program, National Oceanic and Atmospheric
Administration, to the North Carolina Sea Grant College Program.
UNC-SG-96-10
