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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 information focuses on basic questions you should ask
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 section.
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 to move landward temporarily by 75
to100 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
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.]
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 distance 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 were 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,
which ever 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.
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 U.S. Army Corps of
Engineers or the N.C. 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 agent, N.C. 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 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 "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 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.]
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:
N.C. Sea Grant Coastal
Construction and Erosion Specialist
N. C. Aquarium/Fort Fisher
P.O. Box 130
Kure Beach, NC 28449-0130
(910) 458-5780
N.C. Sea Grant Coastal law
Specialist
Box 8605
North Carolina State University
Raleigh, NC 27695-8605
(919) 515-2454
N.C. Division of Coastal
Management
P.O. Box 27687
Raleigh, NC 27611-7687
(919) 733-2293
N.C. Real Estate
Commission
Legal Division
1313 Navaho Drive
P.O. Box 17100
Raleigh, NC 27619-7100
(919) 733-9580
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 county tax or municipal building for the area in which you wish to develop.
U.S. Army Corps of
Engineers/Wilmington Branch
P.O. Box 1890
Wilmington, NC 28402-1890
(910) 251-4455
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
The North
Carolina Real Estate Commission
P.O. Box 17100
Raleigh, North Carolina 27619-7100
919-733-9580
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