Boca Bay: The Impact of Insurance Availability on Residential Property Values
Weeks, H. Shelton; Fraser, Steve P.; Finch, J. Howard
This case study requires students to determine a method for estimating the valuation impact of the changes in access to flood insurance - specifically, changes in the expense associated with the purchase of insurance in the private market. While these expenses have a high degree of certainty, a unique challenge for students in this case is presented by the lack of comparable market transactions involving properties that have been similarly impacted. Quantifying the change in value requires students to adopt the mindset of informed market participants - individuals aware of the differential in insurance expense and who are considering the purchase of the property.
Cornell Real Estate Review
Volume & Issue:
Cornell University; real estate; flood insurance; residential; property; values; Waterfront; valuation; Tax; assessments; Federal; regulation; National Flood Insurance Program; NFIP; Coastal Barrier Resources System; CBRS; estimating; Lee County; Florida; coastal; single-family; homes; appraiser; tax; liability; providers; FEMA; U.S. Fish and Wildlife Service; Consultant; housing; bubble; financial; crisis; Coastal Barrier Resources Act; COBRA; Flood Insurance Rate Maps; FIRMs; interest; rate
Required Publisher Statement: © Cornell University. Reprinted with permission. All rights reserved.