Don't Buy Flood Insurance Now and You'll Pay Later

Natomas Flood Insurance Price Comparison

Flood Insurance will soon be mandatory in Natomas

In January of 2008 FEMA announced that they will move forward with an AE flood zone determination for the Natomas Basin. A study conducted by the U.S. Army Corps of Engineers indicated that the levies surrounding the Natomas Basin do not meet the minimum requirements to retain an X flood zone determination causing FEMA to take action. The new flood zone maps are expected to be finalized in December of 2008 and will require that all property owners with fererally backed loans purchase and keep in force a flood insurance policy. When the final zoning maps are completed and Natomas is placed in an AE flood zone, property owners will be required to purchase flood insurance and the annual rates for Natomas flood insurance policies that can be purchased today for $348 will rise to approximately $1,390. That is over four times the current rate!

If you don't buy flood insurance now, you'll pay later

The fact of the matter is that Natomas is a giant flood basin and FEMA is rezoning it. What does this rezoning mean to you? First it means that the levees in Natomas have been deemed inadequate to protect Natomas from a 100-year flood and that anyone who lives in Natomas is in danger of serious financial hardship if they do not currently have flood insurance.
Second, it will soon mean that if you live in Natomas flood insurance will be mandatory. Not buying a flood insurance policy now is a serious gamble with losing odds. Best case scenario, Natomas may not flood and the rezoning will take effect. Those residents who do not have flood insurance at the time will be forced to purchase one at a high-risk rate that makes the premium over four times more expensive than the current Natomas flood insurance rates. Worst case scenario residents ignore the threat of a flood and the coming rainy season floods the entire area and puts those people without flood insurance into financial ruins.

For the lowest flood insurance rate, buy now.

The good news is that anyone who purchases flood insurance before the new maps are finalized at the $348 rate will be grandfathered in at the lower rate. Over $1000 less than the $1,390 a Natomas homeowner will have to pay if they don't purchase their policy early and it will not go up at all until the end of your current policy term. Not to mention, buying now will provide protection for the coming wet season and protect you and your family from losing everything in the event of a flood. Some people will inevitably try to beat the system and purchase their flood insurance right before the deadline to get the grandfathered lower rate, but consider these two things:

In an attempt to outsmart the system you can save yourself $317 dollars today by waiting until after the rainy season to buy, but if the rain comes and there is a flood you won't feel so smart when everything you own is destroyed and you didn't have any coverage because you wanted to save a few dollars.

Flood Insurance policies take 30 days to become active so even if you purchase a week before the storm hits, if it has not been 30 days you will have no coverage. The only way to truly protect yourself and save yourself money in the long run is to purchase a Natomas flood insurance policy today so you are prepared for what might happen in the future.