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Editorial: Natomas awash
FEMA decision makes insurance mandatory...
Published 12:00 am PST Saturday, January 6, 2007
Note to Natomas homeowners: If you haven't already bought flood insurance, do so now.
The Federal Emergency Management Agency announced Wednesday that all Natomas property owners with federally backed mortgages or home equity loans will be required to obtain flood insurance by November. The requirement is prompted by a new, post-Katrina study by the U.S. Army Corps of Engineers. The study found that Natomas levees are more vulnerable to underseepage than previously thought.
Any Natomas homeowners who wait until after November to buy insurance will pay higher premiums than if they purchased "preferred risk policies" today. Preferred risk policies are available to all homeowners who own floodplain property outside of the designated "100-year" flood zone. They cost roughly $300 a year -- about 40 percent cheaper than mandated flood insurance. While Natomas holders of these policies will see their premiums rise when their policies expire after November, they will get grandfathered in at a lower rate than those without insurance.
Many Sacramento leaders are undoubtedly disappointed with the federal decision. They hoped the agency would allow the region to fairly quickly repair the Natomas levees -- possibly by 2010 -- and forgo the implementation of new floodplain maps that will mandate insurance and possibly restrict development. Because of recent flood control work in south Sacramento, local officials hoped the entire city would be mapped out of the 100-year floodplain for the first time in years.
