FAQ: Flood Insurance Basics
Learning the flood insurance basics will help you evaluate the flood risk to your home or building and determine whether you qualify for low-cost, Preferred Risk flood insurance.
Who Determines Whether I Have to Carry Flood Insurance?
How Do I Know If I Am Still Required to Carry Flood Insurance?
How Do I Find My Current Flood Zone?
Who Determines Whether I Have to Carry Flood Insurance?
- The Federal Emergency Management Agency (FEMA). With the help of the U.S. Army Corps of Engineers and local flood control authorities, FEMA maintains Flood Insurance Rate Maps for communities across the nation. Flood Insurance Rate Maps are divided into flood zones that confer a high, moderate or low risk of flooding to property located within the zone boundaries.
- Flood Insurance Is Required in High Risk Flood Zones. Federal law requires flood insurance if your property is: (1) secured with a Federally-guaranteed loan, and (2) located in a high-risk flood zone. These zones indicate a level of flood protection that falls below FEMA’s 100-year standard. In other words, property that is located in a high-risk flood zone has a greater than 1% annual chance of flooding. Examples of these flood zones are A99, AR, AE and AO.
- Flood Insurance Is Recommended but Not Required in Moderate and Low Risk Flood Zones. The Federal Emergency Management Agency reports that twenty-five percent of all flood insurance claims are filed on property that is located in moderate or low risk flood zones. However, flood insurance is not required in these zones, which Flood Insurance Rate Maps identify with a B, C or X.
- Your Lender. Lenders order a flood zone determination each time a property owner buys or refinances a home or building. These determinations use Flood Insurance Rate Maps to identify the flood risk to your property. Under Federal law, lenders must require flood insurance for property that is located in high risk zones but can require flood insurance regardless of the flood zone. In California, most lenders do not require flood insurance in B, C or X flood zones.
- You. If your property has been released from the Federal flood insurance requirement, you must decide whether to carry flood insurance. Similarly, you must decide whether to carry flood insurance if you move into an area that is protected by a levee but is not subject to the Federal requirement. As you make this important decision, please keep in mind:
- The Risk Remains. Despite improvements to regional levees, Sacramento continues to face one of the highest levels of flood risk of any major U.S. City. The source of this risk is the potential failure of a Sacramento-area levee. Click here to view a Flood Risk Map of the Sacramento Region
- Levees Are Not Invincible. Levees are built to provide a specific level of flood protection. However, severe storms can cause levees to fail or be overtopped, resulting in potentially catastrophic flooding.
- Most Homeowners Policies Do Not Cover Damage Caused by Flooding.
- Don’t Expect a Federal Bailout. If the Federal government declares a flood disaster for your community, Federal assistance usually takes the form of a low-interest loan that property owners must repay in addition to their existing mortgage.
- Flood Control Authorities Recommend Flood Insurance Protection: SAFCA, FEMA, the City of Sacramento and Sacramento County urge property owners who are protected by a levee to carry flood insurance.
- Low-Cost Flood Insurance Is Now Available. Click here for more information about low-cost, Preferred Risk flood insurance.
How Do I Know If I Am Still Required to Purchase Flood Insurance?
- Flood Insurance Is Still Required. Flood insurance is required for property located in the blue-shaded areas on the Flood Risk Map of the Sacramento Region. However, your lender can require flood insurance regardless of the level of flood risk to your property.
- Flood Insurance is Recommended but Not Required. SAFCA, FEMA, the City of Sacramento and Sacramento County recommend flood insurance if your property has been released from the Federal flood insurance requirement. The Flood Risk Map of the Sacramento Region indicates in dark- and light-green the areas that have been released from this requirement and are protected by a regional levee. Currently, flood insurance is recommended but not required in the Natomas community. However, in November of 2007, flood insurance likely will be required for property in this area.
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Flood Zone Changes Can Mean Lower Flood Insurance Rates for Sacramento Property Owners
Flood zones change to reflect an increase or decrease in a community’s level of flood protection. In recent years, improvements to local flood controls have resulted in revisions to Flood Insurance Rate Maps for the Sacramento region. These revision have moved approximately 115,000 properties from high-risk A99 flood zones into moderate-risk X flood zones. The Federal government does not require flood insurance for property located in X flood zones.
If your property has been released from the Federal requirement, you have three flood insurance choices:
- CONVERT to a Low-Cost Preferred Risk Policy. Preferred Risk Policies (PRPs) provide you with flood insurance coverage that is equal to or better than the coverage you receive from a Standard flood insurance policy for about half the price. More than 25,000 Sacramento property owners already take advantage of Preferred Risk savings and protection. Click here for more information on Preferred Risk flood insurance.
- KEEP Your Standard Flood Insurance. Property owners who do not convert to a PRP will continue to benefit from flood insurance protection but will keep on paying a higher, Standard rate.
- CANCEL Your Flood Insurance. Property owners who obtain their lender’s written permission will be able to cancel their flood insurance. In the short term, cancellation will save property owners money. But in the long term, it could cost them dearly.
How Do I Find My Current Flood Zone?
Your Property Is in an X Flood Zone If It Is Located in Either the Dark- or Light-Green Shaded Area on the Flood Risk Map of the Sacramento Region.
Ultimately, however, your insurance agent will check the flood zone for your property when he or she writes, converts or renews your flood insurance policy. Or, if you opt to cancel your flood insurance, your lender will check the flood zone for your property when you request your lender’s permission to cancel. Please consult the Troubleshooting section of this website if you believe your property has been moved into an X flood zone but your agent or lender says otherwise. Again, to qualify for a PRP, or to cancel your flood insurance, your property must be located in a B, C or X flood zone.
For More Information:
- Contact the City of Sacramento: If your property is located within the City limits, please contact the City of Sacramento’s Floodplain Information line at (916) 808-5061.
- Contact Sacramento County: If your property is located in the unincorporated area of Sacramento County, please contact the County’s Flood Zone Information Hotline at (916) 874-7517.
- Contact the Sacramento Area Flood Control Agency: If you have questions about levee improvements to the Sacramento region or general questions about flood insurance, please contact SAFCA at (916) 874-7606.
- Visit the National Flood Insurance Program’s website at www.floodsmart.gov.
- Contact an Insurance Agent: If you would like to apply for a Preferred Risk flood insurance policy, please contact an insurance agent.
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