Changes In Federal Flood Insurance Hit Rural Areas; Some Coverage To Rise 4X And More [View all]

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Big changes in federal flood insurance policy are beginning to strike in the Sacramento area, in some cases quadrupling the cost of coverage and threatening local real estate markets.

The changes are not expected to affect urban areas such as the city of Sacramento. But rural areas are already feeling the pain, and it is expected to worsen.

In the Point Pleasant area south of Elk Grove, Walter Hoppe recently learned that flood insurance for his 1,500-square-foot home will increase from $800 to $4,500 per year. The increase hasn’t been imposed yet, but it will likely hit the next owner of his home.

“Obviously, we’re not too happy,” said Hoppe, who has owned his home since 1970. “That’s a tremendous increase.” On Yolo County’s Merritt Island in the Sacramento-San Joaquin Delta, real estate agent Debbie Elliott is offering a home for sale at $595,000. Flood insurance under the new policies is estimated at $12,079 a year – or about $1,000 per month. That compares to a prior rate closer to $1,000 annually.

EDIT

http://www.sacbee.com/2013/11/16/5916933/steep-hike-in-flood-insurance.html