Jeez, man ... I cannot believe that's allowed by insurers/banks. I suppose if everyone paid cash and nobody has homeowners ins, what the heck, but otherwise ... wow. That's insane.

It's a beautiful location, but at some point in time, the outer banks will have hurricane flooding.

http://www.coastalouterbanks.com/factors-consider-buying-obx-real-estate/

1. Know your Flood Zone before you buy. Properties on the Outer Banks will fall into one of four flood zones: X, AE, VE, or Cobra. What zone the property is located in along with other factors such as elevation, age and the structure itself are factored into your premium. Most properties on the Outer Banks are eligible for flood insurance through the National Flood Insurance Program up to $250,000. If you are securing financing for your property, you will be required to have flood insurance unless your property falls in an "X" flood zone. If you are considering properties that fall into a "Cobra" flood zone, it is important to note that you will not be able to obtain flood insurance through the NFIP program, which is likely to have a big effect on your insurance premium.