Oceanfront Issues

Don & Sylvia Leutz REALTOR BROKERS

REALTOR-BROKERS, Licensed in Hawaii, Nevada and California - Graduates REALTOR® Institute.

Accredited Buyer Representatives

- Don Leutz -

Certified Residential Specialist

Century 21 All Islands

P.O. Box 223700

5-4280 Kuhio Highway

Princeville, HI 96722

Office:

(808) 240-2413

Cell:

(808) 652-9402

Email:

Leutz@Inreach.com

PURCHASING OCEANFRONT REAL ESTATE IN HAWAII

Everyone's dream of the perfect Hawaiian tropical paradise is a home right on the beach! But before you go ahead and make the decision to purchase oceanfront property, you should be aware of these important issues outlined by the Sea Grant College Program.

The University of Hawaii Sea Grant College Program is supported by the State of Hawaii Department of Land and Natural Resources and the Coastal Zone Management Program for the State of Hawaii Office of Planning. They have produced a guide titled "Natural Hazard Considerations for Purchasing Coastal Real Estate in Hawaii". The information presented in this document is intended for general guidance only. Below are some excerpts from this publication. For more information check out their website: www.soest.hawaii.edu/seagrant.

What natural hazards can affect coastal properties? Hawaii's coastal properties are subject to a variety of coastal hazards that include: high surf, coastal and bluff erosion, coastal flooding, Tsunamis, hurricanes, earthquakes, lava flows and subsidence.

A tsunami may last for several hours and is capable of causing widespread destruction in low-lying coastal areas. It is important to investigate what areas historical tsunamis have impacted. Maps that identify Tsunami Evacuation Zones are found in all Hawaii telephone directories.

A hurricane has multiple components (storm surge, rain, and wind) that can cause severe damage to property and structures. Hurricane season in Hawaii is June through November. Hurricane storm surge and flooding are most damaging to properties immediately fronting the ocean in the VE-Zone of the Federal Emergency Management Agency (FEMA) flood zone or in low-lying areas. Information on FEMA flood zones can be found at: www.floodsmart.gov Click on "What's Your Flood Risk?" Then on "Flood Zones Defined".

Additional coastal hazards can be identified in the Atlas of Natural Hazards in the Hawaiian Coastal Zone at: http://pubs.usgs.gov/imap/i2761. Or see www.mothernature-hawaii.com.

Issues to consider when investing in coastal real estate:

	What is the elevation of the property above sea level and what is the likelihood of flooding? Higher elevation decreases the susceptibility of the property to seasonal high surf and flooding.
	What is the condition and behavior of the shoreline? Is it rocky, cliffed, or sandy? Is it stable, seasonally dynamic or chronically eroding? Rocky shorelines tend to be the most stable.
	Does the configuration of the lot and type of construction allow for relocation of dwellings if threatened by a coastal hazard?
	What is the shoreline and development history of the property? Have attempts to control erosion been made in the past and were they successful?
	Have there been any applications for shoreline protection structures? If so, have any been revoked or rejected? Are existing shoreline structures legal?
	What is the coastal hazard vulnerability of the property?

A professional geologist or engineer can provide a Coastal Hazard Assessment that addresses all of the above questions.

Can you 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 (NFIP) was established by Congress to make flood insurance available nationwide to eligible properties. Large discounts on premiums often are available for buildings constructed above minimum standards. For example, discounts may be available for buildings elevated on pilings or built higher than required to avoid storm-surge flooding. Check with your insurance company on their policy. 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 zone. Failure to maintain coverage may permit the lender to declare the balance of the loan due and payable.

In the wake of the heavily destructive 2005 Atlantic/Golf Coast hurrican season, some insurance companies are canceling or not issuing new coastal homeowners insurance policies along the US East Coast and the Gulf Coast. Talk to your insurance agent about current policies and your options.

Links for more information:

Atlas of Natural Hazards in the Hawaiian Coastal Zone: http://pubs.usgs.gov/imap/i2761

FEMA Coastal Construction Manual: www.fema.gov/rebuild/mat/fema55.shtm

FEMA Flood Insurance Rate Maps: www.msc.fema.gov

Hawaii Statewide Hazard Mitigation Forum. www.mothernature-hawaii.com

Kauai Shoreline Erosion Management Study: www.hawaii.gov/dbedt/czm/czm_initiatives/initiatives.html

Participant's Guide to the SMA Permit: www.hawaii.gov/dbedt/czm/czm_initiatives/sma.html

Sea Level Rise and Tides: http://tidesandcurrents.noaa.gov/index.shtml

University of Hawaii Coastal Geology Group: www.soest.hawaii.edu/coasts/index.html