A Year of Changes in Natomas Area Flood Insurance
There have been a lot of changes in flood insurance for the Natomas area in the past year, to make it simple — we have created the below list of the most important things that realtors, lenders, and homeowners should know about the current state of flood insurance in the area.
Note: The National Flood Insurance Program (NFIP) has had its authorization extended through 12/8/2017. The House and Senate are actively working on a long term reauthorization agreement.
- The 95833, 95834, and 95835 zip codes (Natomas area zips) have all been remapped into the A99 zone making new construction and reconstruction possible again.
- As of October, 2016 A99 zones are eligible for the Preferred Risk Policy (PRP).
- The PRP rate for a primary residence on a slab foundation is $450/year ($499/year for crawlspaces).
- Secondary residences and non-owner occupied have a surcharge making them $675/year.
- No elevation certificate is required — this includes existing homes and new builds.
- It is in the buyer’s best interest to purchase a new flood policy, not to assume the seller’s policy.
- This is because non-pay cancellations follow the policy, not the policy holder. So, a new policy holder would have a “clean slate” so to speak
- Also a new policy will automatically have 12 months of coverage, whereas in taking over the seller’s policy, there may only be a few months left on their policy term.
- The only time we run into issues with these rules is if the property is within 100 feet of a large body of water. Homes on Garden Highway come to mind.
Purchasing a new policy is the easiest, fastest, and best option for buyers. It does not cost them anything more. For realtors: tax records in MLS have recently started showing the flood zone for a property. It is under “Location Information” and lists a “Flood Zone Code”. X zones are non-required. Anything with an A will be required. A99 zones follow the bullet points above.
As flood insurance changes, Purves & Associates is dedicated to making sure you stay up to date on what is happening. Please reach out to our team of dedicated agents with any questions you may have.