Olney Creek Residents In New Floodplain Not Alone
INDUSTRY NEWS, LOCAL GOVERNMENT, SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SENIORS
January 11th, 2010
A recent article in the LA TIMES reports tens of thousands of homeowners in Southern California are being required to purchase expensive flood insurance because FEMA has updated maps placing their homes in high-risk flood zones. Apparently, more than 150 cities and unincorporated areas in LA, Orange, Riverside, Ventura and San Bernadino counties have been notified of the new requirement.
Estimates peg the additional insurance premiums between $500-$1,700/year. Homeowners with a federally-backed mortgage (FHA, VA, Fannie Mae, Freddie Mac) will be required to purchase the costly flood insurance. More than half of all mortgages are federally insured or backed loans. Failure to purchase the insurance will result in lenders buying(forcing) the policy and billing the borrower for the policy which is usually at a higher cost than one purchased by the homeowner.
Hundreds of homeowners in south Redding along Olney Creek, east of HWY 273 have been notified the levee built about 30 years ago does not meet the revised height requirements to withstand a 100-year flood event. Property owners may be required to purchase pricey flood insurance this year. Cost estimates are comparable to those quoted for SoCal. A levee along the Santa Clara River in Oxnard was decertified just like the one in Redding, adding 1800 homes to a flood zone.
Property owners that own their property free and clear of loans can assume the risk by electing not to buy flood insurance. Others may hire a surveyor to certify the elevation of their property or home is above the designated flood zone (elevation certificate) if they believe they reside on higher ground.
Modern technology has allowed engineers to more precisely define limits of flood zones. FEMA feels they are doing homeowners a service by notifying them of a potential risk before disaster strikes.
The problem stemmed from flood maps that in some cases were more than 40 years old. In other cases, railroad berms identified on maps as providing flood protection have been eliminated. Local government agencies, including Redding, have asked the federal government for grants to fund engineering studies in affected areas to check the accuracy of the new flood designations.
Renters and homeowners in areas rezoned may want to contact FEMA for information on its National Flood Insurance Program. More than 90 insurance companies work with FEMA to offer flood policies. When purchased prior to a flood map zone change taking effect, the cost is substantially less.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS REAL LIVING
CORNER OF COURT AND PLACER IN REDDING
MORE THAN A QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Yeah I agree. Good points really!
Yeah I agree. Good points really!
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