|
Updated November 2009
Changes To Preferred Risk Rate Insurance
(Flood Map Issued October 19, 2001)
Background
Many of our residents obtained a low-cost National Flood Insurance Program (NFIP) Preferred Risk Policy prior to the publication of the October 19, 2001, FEMA Flood Insurance Rate Map (FIRM) in San Mateo. In the past insurance purchased prior to the imposition of the FIRM remained in the Preferred Risk Rate category and premiums continued at the same rate and coverage each year upon policy renewal. Many of San Mateo’s residents have been enjoying the same Preferred Risk Policy Rate for the last eight years.
Changes
FEMA disclosed during recent discussions with San Mateo officials that the Preferred Risk Policy was incorrectly applied in San Mateo. The correct NFIP procedures allow homeowners in a flood zone to purchase for one year only a Preferred Risk Policy if done so at least thirty days in advance of the publication of a FIRM. The second year renewal migrates the policy from a Preferred Risk policy to a “Standard Rated” Zone X policy, resulting in substantially higher rates. The NFIP began rating City of San Mateo renewals of Preferred Risk Policy’s using the corrected criteria May of 2009.
Property owners in the proposed new FIRM area south of State Route 92 will have the ability to purchase their insurance at the Preferred Risk rate if secured at least thirty days in advance of the Final Map. Those policies will then convert to Standard Rated Zone X Policies after the first year. The “Standard Zone X” risk category is nonetheless a substantial savings from purchasing insurance subsequent to the Final Map publication. Following the Final Map date those properties not insured will be in the “High Risk” rate category (Standard Rated A Zones).
To see information relevant to the most current insurance rates:
Date Change In Proposed New Flood Map Area
On April 18, 2008, FEMA issued a revised preliminary Flood Insurance Rate Map (DFIRM’s) for San Mateo County and indicated to cities that the effective date of the Final Map to be January 2009. FEMA has pushed back this date, the current schedule indicates that the Letter of Final Determination will be issued in Fall 2009, and the new Final Map will be published in Spring 2010 (Final Map), exact month and date to be determined. Mandatory insurance requirements become effective at the time of the Final Map.
|