If you’ve been planning to buy a home in Panama City Beach, you may be wondering if it’s still a good idea as you watch the news. Hurricanes can cause devastating damage, it’s true. Before you decide to invest in real estate in Florida, here’s what you need to know to make sure you’re prepared to be a homeowner in a hurricane prone area.
Understand Hurricane Risk Zones
The first thing to evaluate when investing in a hurricane-prone area is the location itself. Coastal regions in general are frequently impacted by hurricanes, but the National Oceanic and Atmospheric Administration (NOAA) provides detailed maps showing hurricane risk zones to provide more information. Familiarizing yourself with these maps can help you understand which areas are most vulnerable.
In a place like Panama City Beach that is nearly all coastal and potentially at risk, it’s also important to consider how far a property is from the coast. Properties closer to the shoreline are often more susceptible to hurricane damage due to storm surges and high winds. While beachfront homes might seem like ideal investments for vacation rentals or second homes, they are also at higher risk, so you’ll be wise to take safety measures if you want a beachfront property.
Building Codes
Properties in hurricane-prone areas are typically subject to stringent building codes designed to minimize damage from extreme weather. In Panama City Beach, homes are built with hurricanes in mind.
If you’re investing in an existing property, check whether the home or building complies with local hurricane-proofing codes. If a home was renovated as a DIY project, not up to code, you may not want to buy it. Homes that are built after major hurricanes often follow updated building standards, which can make them more resilient. In some cases, older properties may need to be retrofitted to meet current standards. We can help you negotiate terms with the seller if you’re looking at an older home.
Hurricane Proof Features
One of the advantages of investing in newer properties in hurricane zones is that many are already equipped with hurricane-resistant features. Older properties can also be equipped with these features. WE are talking about things like:
- Impact-resistant windows and doors: These are designed to withstand flying debris and strong winds.
- Reinforced roofs: Roofing materials and techniques that ensure the roof can withstand intense wind pressure.
- Storm shutters: These provide an extra layer of protection during a hurricane by preventing damage to windows.
- Elevated foundations: Especially important in areas prone to flooding and storm surges.
Investing in properties with these features can significantly reduce your risk and long-term costs, as hurricane damage can be devastating and expensive to repair.
Flooding and Storm Surge Risks
One of the greatest risks associated with hurricanes is flooding, which can result from both storm surges and heavy rainfall. When you are evaluating a property, pay close attention to its elevation and whether it is in a floodplain. The Federal Emergency Management Agency (FEMA) provides flood zone maps that can give you an idea of a property’s flood risk. If the property is located in a flood-prone area, you may want to consider investing in elevated homes, like those built on stilts or elevated foundations to protect against storm surges and flooding.
Understand Insurance in Hurricane Prone Areas
Homeowners insurance in hurricane-prone areas can be significantly more expensive than in regions with lower weather risks, but it’s worth it. In addition to standard homeowners insurance, properties in these areas often require additional policies, such as:
- Flood insurance: Most standard homeowners insurance policies do not cover flood damage, so purchasing separate flood insurance is essential.
- Windstorm insurance: In some areas, homeowners may need separate windstorm insurance to cover damage caused by hurricane-force winds.
It’s critical to factor in these additional insurance costs when you are calculating the cost of homeownership or the potential revenue of an investment property. Failure to have the appropriate coverage could result in significant financial losses if a hurricane strikes.
Maintenance and Preparedness
Investing in real estate in hurricane zones means more maintenance and preparedness responsibilities. In addition to regular upkeep, you’ll need to prepare the property ahead of hurricane season. This can include installing storm shutters, securing outdoor furniture, checking for roof and window leaks, and trimming trees around the property.
You may also need to budget for regular inspections and repairs, particularly for properties close to the coast, where saltwater and high humidity can cause long-term wear and tear. Whether it’s a personal residence or a rental property, regular care for the property is one of the most powerful ways to proactively protect your investment.
We know that headlines are scary right now, but we want to remind you that many people love living in Florida that it’s worth the hurricane risk. There are steps you can take to protect yourself and your investment. Want to learn more about investing in Panama City Beach real estate? We can help, so contact us any time.