Flood insurance will be required by December 8, 2008, on all mortgaged homes in the north Sacramento area, which includes Natomas. The following ZIP codes, comprising more than 26,000 homes, will fall under flood insurance requirements: 95833 to 95838 and 95815.
Basically, it boils down to this: if you buy a flood insurance policy now, you pay the lower rate for one year, at which time your renewal rate will be based on the Standard X zone rate. If you do not buy a flood insurance policy until December 8, your rate will be not be grandfathered, and you will pay the AE Zone rate.
Here is the available coverage:
The maximum insurance available under FEMA is $250,000 building and $100,000 contents. Rates are:
- Preferred Rate for X Zone before December 8: $348
- After December 8, Standard Zone rate is $1,250
- After December 8, AE Zone rate is $2,219.
So, if you take out a policy now, your premium for the first year will be $348. After that, $1,250 per year. If you don't, you will pay $2,219.
It's a good idea for everybody in Sacramento to carry flood insurance, whether your home is free and clear or mortgaged. We are bordered by two rivers, with levees that could break at any time, and let's not even talk about the Folsom dam. Remember, a 100-year flood plain does not mean a chance of a flood is one in 100 years. It means you have a 1-in-100 chance of a flood in any year. If you don't have flood insurance, call your insurance agent today.
Source: Jon Merker, TWFG Insurance Services.
Photo: Big Stock Photo
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
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Elizabeth
You don't leave a stone unturned.
Sincerely
Tom Braatz
Thanks, Tom. I feel it's important for consumers to be informed. If I didn't have flood insurance, which I do, of course, I'd be on the phone this morning to my insurance people. Essentially, if home owners wait for next year, they could be paying double the premium pricing they would get now.
Elizabeth- It is good of you to pass along the information to anyone who might be looking to buy or already owns in your area. I never thought of Sacramento as being anywhere near a flood area. I forgot about the Sacramento river =)
Best,
Scott
It's good that you are getting the word out so that affected homeowners can be prepared. When flood maps were redrawn in my area last year, certain portions were placed in a flood zone and it caught most of the homeowners off guard. It is causing some problems trying to sell homes in that area because of the extra cost above and beyond the normal monthly mortgage payment.
Elizabeth that is excellent information that lives there and want to save money. Great job.
Elizabeth: My husband and I are contemplating buying flood insurance here in VA. It's not mandatory where we live, but we do live next to a very large water runoff. We were told it's a 100 year flood plain, but that is not reflected in the County maps. Better to be safe than sorry.
Elizabeth, I have been working with Realtors® and buyers for over 30 years and the amount of misinformation is unreal. Thank you for acknowledging your source. Information nationwide can always be found at www.floodsmart.gov and in the Sacramento area at www.safca.org . BTW, I read your posts daily.
Elizabeth, I think with the rivers situation as you state it, this mandatory coverage is absolutely good for the area.
Timely post! I just saw a presentation by SAFCA at the SAR Young Professionals Council forum this morning...I will be posting a similar blog topic today myself!!
wow that is huge - what great info for your clients - great reason to buy before the 8th also
Hi Scott: It's not just Sacramento, you know. :)
Hi Pam: Some builders are finding it's a problem selling in Natomas, too, for that reason. And many will subsidize the rate increase.
Hi Fred: Everybody wants to save money, don't they?
Hi Chris Ann: Practically every home in America is at risk of flooding.
Hi Jon: Hey, you sent me an informative email, so of course I would source you. I've been following the flood rate discussions for a long time and was glad to see some resolution. Thank you.
Hi Gary: We need to shore up our broken levees, though.
Hi Erin: See, great minds think alike!
Hi Thesa: You figure, over 10 years, by acting now, home owners can save more than $10,000.
It great to hear another professional getting the word out. The effective date for the rate increase is less than 1 month away! We have many clients that we are trying to get in contact with that are NOT aware of this situation. Great Blog!
Thanks, Bobby. Actually, I advise all my clients, whether they are located in a flood zone or not, to get flood insurance. It's just the smart and safe thing to do. But for home owners in Natomas, for example, they are going to pay through the nose big-time if they don't do it NOW.
Great Job. Keep up the work!!