Mandatory flood insurance for Sacramento?
A few years ago I was working with a young couple who were attempting to purchase their first home in the Pocket Area. The home was off of Riverside Drive which was appropriately named since the Sacramento River is adjacent and held in place by levees. My clients didn’t have a lot of money for a downpayment and with other monthly obligation were stretching to qualify for a loan. Since the property was in a 100-year flood plane, flood insurance was required by the lender. The high cost of the premium figured into their monthly payment and nearly derailed the deal.
Now a local Sacramento legislator wants to make flood insurance mandatory for every home and business owner in the Central Valley. Assemblyman Dave Jones recently introduced legislation to require every household and business in Sacramento to carry flood insurance if their property is located in a 200-year flood plane which includes all of the Central Valley. Although well intentioned, requiring home owners to spend an additional $400 to $500 a year for a state flood insurance program will impact property values and sales. It will also be a boom to real estate attorneys specializing in litigation against sellers who fail to disclose to buyers issues that may affect a home’s desirability.
If we are going to require flood insurance for every home located within a 200-year flood plane why not require earthquake insurance for every home that could be affected by an earthquake? Why not require mudslide insurance for every home that could be affected by mudslides or radon gas insurance or mold or termite insurance for every possible contingency regardless of how remote. Well, you get my direction here.
If homeowners want to purchase flood insurance, so they should. Another new law requiring it as a condition for all loans in the state that has an address lower than 300 feet in elevation will be a boom to home values in the foothills having no such requirements.
Residents of Placer and El Dorado County should get on the Dave Jones bandwagon and support yet another reason why homes are not affordable in California. The cost of flood insurance after Hurricane Katrina is going up and insurance policy holders, who pay the premiums, will be paying for that mess. Dave Jones should allow individual homeowners to make the decision on flood insurance not the state.
The terminator (Austrian Oak) recently proposed $9 billion in general obligation bonds for flood control and water improvements. Homeowners and businesses in the Central Valley should not pay for the cost twice.
Now a local Sacramento legislator wants to make flood insurance mandatory for every home and business owner in the Central Valley. Assemblyman Dave Jones recently introduced legislation to require every household and business in Sacramento to carry flood insurance if their property is located in a 200-year flood plane which includes all of the Central Valley. Although well intentioned, requiring home owners to spend an additional $400 to $500 a year for a state flood insurance program will impact property values and sales. It will also be a boom to real estate attorneys specializing in litigation against sellers who fail to disclose to buyers issues that may affect a home’s desirability.
If we are going to require flood insurance for every home located within a 200-year flood plane why not require earthquake insurance for every home that could be affected by an earthquake? Why not require mudslide insurance for every home that could be affected by mudslides or radon gas insurance or mold or termite insurance for every possible contingency regardless of how remote. Well, you get my direction here.
If homeowners want to purchase flood insurance, so they should. Another new law requiring it as a condition for all loans in the state that has an address lower than 300 feet in elevation will be a boom to home values in the foothills having no such requirements.
Residents of Placer and El Dorado County should get on the Dave Jones bandwagon and support yet another reason why homes are not affordable in California. The cost of flood insurance after Hurricane Katrina is going up and insurance policy holders, who pay the premiums, will be paying for that mess. Dave Jones should allow individual homeowners to make the decision on flood insurance not the state.
The terminator (Austrian Oak) recently proposed $9 billion in general obligation bonds for flood control and water improvements. Homeowners and businesses in the Central Valley should not pay for the cost twice.
posted by Ken Calhoon at 8:38 AM
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