At over $1,000 annually this is a substantial addition to a homeowner’s insurance bill, which they were told they did not need to pay as Natomas was protected from flooding at the level deemed safe.
Flood insurance break in works for Natomas residents
By Terri Hardy - Bee Staff Writer
Published 12:00 am PST Monday, January 8, 2007
Natomas homeowners with sticker shock over news that they must purchase federally required flood insurance by November take heart: City officials said Sunday they are working to reduce premium costs.
Because the city has earned one of the highest ratings in a voluntary incentive program offered by the Federal Emergency Management Agency, Sacramento property owners are entitled to a 10 percent discount on their standard premiums, said Jessica Hess, a spokeswoman for the city utilities department, which manages the city's floodplain.
"We want people to know that the city is doing whatever it can to make flood insurance as affordable as possible," Hess said.
Studies last year found that Natomas basin levees suffered from underseepage and were weaker than believed. Because they no longer meet the 100-year flood-protection standard, FEMA notified the city last week that it would be revising the area's flood-risk map by November.
The Natomas basin includes all of South and North Natomas, as well as unincorporated portions of Sacramento and Sutter counties.
FEMA will now embark on a study of the basin to determine the basin's new flood zoning rating. By the time the official map is completed in November, all Natomas property owners with a federally backed mortgage or home equity loan must purchase flood insurance.
Natomas residents surprised by the news have also been confused by conflicting reports on the costs, Hess said.
Initially, FEMA said property owners could buy a preferred-risk policy by November -- at a cost of about $300 -- and that those premiums would stay the same indefinitely as long as payments came in on time.
The next day, FEMA officials said that was inaccurate. They clarified that Natomas homeowners can buy a preferred risk policy for $317 but that the rate will last only one year. It must be purchased before November and includes $250,000 coverage for the structure and $100,000 for contents.
When the preferred policy comes up for renewal in 2008, homeowners will be required to buy a much pricier standard insurance policy. If the property owner originally purchased a preferred risk policy before November 2007, their standard rate will be $1,132 annually for the same coverage, FEMA officials said. By comparison, if homeowners wait until after November 2007, they will pay $2,038.
