Natomas Flood Insurance Facts
- Flooding is the most common natural disaster
- Basic Property Insurance DOES NOT cover flood damage
- Preferred Risk Policies provide the best protection for the lowest cost
- FEMA is in the process of rezoning Natomas as an AE (High-Risk) flood zone
- Flood Insurance rates in Natomas will soon be 4 times or more what they are today
- You can avoid some of the price increases by purchasing a Preferred Risk Policy and taking advantage of the Grandfather Policy.
Flooding is the most common natural disaster
- According to FEMA, between 2000 and 2007, there were 62 instances that were declared disasters by the President. Between those years flooding actually accounted for more disasters than snow, fires and hurricanes all put together. And just because you don't live near water or you have not experienced a flood before does not mean that you are not at risk of having a flood now or in the future. Each year flash floods, inland flooding and seasonal storms cause damage all over the country. In fact, 30% of the flood insurance claims submitted each year come from areas that are classified as low-to-moderate-risk areas.
Basic Property Insurance DOES NOT cover flood damage
- Nearly all basic property insurance policies (Homeowners, Condo, Commercial Property) specifically exclude flood damage from coverage. That means that in the event of a catastrophic flood, your property insurance company will not offer any assistance in getting your life back on track. Only flood insurance truly protects your home and your personal property from financial devastation in the event of a flood. A flood insurance policy will compensate the policy holder for covered losses that result from the flood and unlike a disaster loan; you don't have to pay the money back.
Preferred Risk Policies provide the best protection for the lowest cost
- For as little as $348 per year, home owners can purchase a Preferred Risk Policy and get $250,000 of building and $100,000 of contents coverage if they are in a preferred risk zone. Only homes that are located in a low-to-moderate-risk zone qualify for these low rates. Natomas is still in this preferred risk flood zone for a few more months, but when FEMA finalizes the new flood maps on December 8, 2008 and the Natomas area is redesignated as AE(High-Risk) the prices will go upwards of $1390+ and flood insurance will be mandatory for all properties with federally backed loans. Don't wait- flood insurance policies take 30 days to take into effect. Get a Preferred Risk Policy now.
FEMA is in the process of rezoning Natomas as an AE (High-Risk) flood zone
- On January 15, 2008 the Federal Government announced that they would change the flood zone in Natomas from a preferred X zone to an AE flood hazard zone. A study conducted by the U.S. Army Corps of Engineers indicated that the levies surrounding Natomas, CA do not meet the minimum requirements for a preferred X flood zone and therefore FEMA announced that they will place Natomas in an AE(High-Risk) flood zone. When the new flood maps are finalized and Natomas is officially designated as an AE flood zone on December 8, 2008, all properties with a federally backed loan will be required to purchase a flood insurance policy.
Flood Insurance rates in Natomas will soon be 4 times or more what they are today
- When the final flood zone maps are completed in December 2008 and Natomas is officially designated as an AE flood zone, property owners who have a federally backed loan will be required to purchase flood insurance and annual rates for the same flood insurance policy a property owner could purchase today for as little as $348 will rise to approximately $1,390. That is over four times the current rate for the exact same flood insurance policy!
You can avoid some of the price increases by purchasing a Preferred Risk Policy and taking advantage of the Grandfather Policy.
- The good news for Natomas property owners is that anyone who purchases flood insurance before the new maps are finalized will lock in the Preferred Risk Policy rate for the first year and they will be grandfathered into a lower rate in the years to come. Those Natomas homeowners who purchase once the rating is finalized will have to pay $1,390 for the first year and the same or higher every year after that! Purchase a Flood Insurance Policy today and lock in the lowest rates now before it's too late!
