Flood Insurance - Will We Be Forced To Buy In California?

Flood Insurance - Will We Be Forced to Buy in California?

California is being forced to buy flood insurance. FEMA has been updating their maps with higher flood risk areas. Because of this, thousands of homeowners in the Los Angeles and surrounding counties including Orange, Ventura, Riverside, and San Bernardino must buy flood insurance.

If FEMA reports your home in a flood plain, and that it could be affected by the “100” year storm, then you have to buy. Most of the homes they’ve included in the higher risk flood zone appear to be near lakes/rivers, creeks, below dam elevation, or in low-lying areas.

The bottom line for these homeowners: Either you get flood insurance, or your lender will get it for you. Flood insurance could add $500 - $1700 per year to your regular home owners insurance. Anyone with a federally backed mortgage, such as Fannie Mae, Freddie Mac, or FHA must have flood insurance. Between Fannie and Freddie, they own more than half of all mortgages nationwide.

Some upset homeowners and city officials are paying for studies to see if they can get FEMA to recall their decision. In a few cases it’s worked. In 2003, FEMA began this nationwide task of revising their flood maps to be able to better identify homes that could flood in the “100” year storm. Yet FEMA’s definition of this storm calculates a 1% likelihood of occurring in any given year.

My advice to San Diego County….be prepared to buy flood insurance.

The Feds will notify you if your home has been flagged for flood insurance.