Flood Insurance Rate Map Changes for the City of Woodland

FEMA flood map changes for the city of Woodland took effect 5/16/2012 and may allow new decisions related to flood coverage. Property owners should visit the City of Woodland website  to determine if their property has been placed in the low to moderate risk flood zones B, C or X.

We recommend that eligible property owners convert their policies to the discounted Preferred Risk Policy and receive a premium refund. The maximum cost of a residential preferred risk policy is $405 so policyholders may be eligible for a refund of any premium amount previously paid over the cost of the newly converted policy. Subsequent changes to the flood policy after conversion to the preferred risk policy will be possible only at the renewal date each year.

When considering the decision to cancel or convert please be aware of the following:

Flooding is still a risk!

• The City of Woodland is in a valley and risk of flooding is always present.
• Some people think that if there has been no flooding in 20 years or 50 years that they’re safe. But in a floodplain, sooner or later the waters will rise. That is why it’s called a floodplain.
• These flood map changes show that the risk has been reduced not removed
• Statistics show that 20 to 25% of all flood claims come out of low and moderate flood-risk areas
• The shaded zone X is still a designated zone; it simply qualifies for the lower cost Preferred Risk Policy and mortgage companies do not require coverage at this time.
• Flooding is NOT covered under a regular Homeowners Insurance policy … ever.
• Flood insurance may simply no longer be required by the mortgage company; that is all.
• It is our duty to inform our clients of their options and Cancellation is not the only choice.
• In all cases, refer to your insurance agent to learn more about your individual flood risk and what coverage options are available.

Converting to the low cost Preferred Risk Policy is very easy and refunds can be requested immediately!

• Flood coverage will continue and extra protection for personal property, in most cases, will be added.
• Refunds will be issued for the difference in premium for the current policy year and only a signature is required. It is that easy!
• Premiums are affordable at about $1 or less per day
• Homeowners will NOT need a letter from the mortgage company for conversion.
• Property owners can remove the flood insurance requirement from their impound account which will reduce their house payment
• Flood Insurance will be their choice at renewal … not the mortgage companies
• Most importantly if a flood occurs they will have coverage for their home and personal property.

Please be aware that the Cancellation of a flood policy due to a map change is strictly enforced by FEMA. Before FEMA will allow a cancellation to be processed, the property owner must first secure a letter from all mortgage companies waiving the flood insurance requirement. This letter must state “flood insurance was a requirement of the mortgage loan and due to a map change flood insurance is no longer required”. More information on this process as well as sample mortgage letters can be found on the City of Woodland website.

Your financial security is important to us and we are always available to discuss flood or any other insurance coverage. Please contact our office at (530) 661-0666 or click on my e-mail address below to send me any questions you may have or clarifications you may need!