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Flood insurance - subsidized premium rates eliminated

Original post made by Julia, Professorville, on Sep 25, 2013

I received a letter from Fire Insurance Exchange Flood Insurance Processing center called Notice of Non-Renewal.
It says that my existing flood insurance policy will not be renewed because NFIP subsidized premium rates are eliminated and I will need to pay full risk premium rate (plus provide an elevation certificate, photographs of the building).
I have lived in this house for 8+ years and always had flood insurance and it just seems strange that now I have to go through all this. Has anyone received similar notices?

Comments (9)

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Posted by John
a resident of Midtown
on Sep 25, 2013 at 6:14 pm

>It says that my existing flood insurance policy will not be renewed because NFIP subsidized premium rates are eliminated

Why should you have subsidized flood insurance? You chose to live in a flood plain. Quit complaining.


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Posted by palo alto resident
a resident of Embarcadero Oaks/Leland
on Sep 25, 2013 at 7:03 pm

John - A lot of residents in Palo Alto did not "choose to live in a flood plain", they purchased their homes years before the areas near the creek were declared flood zones and they were forced to buy flood insurance, were forbidden from putting in basements and were forced to raise their home significantly if they remodeled, which in some cases impacted the value of their homes. They have a little room for complaint.


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Posted by John
a resident of Midtown
on Sep 26, 2013 at 10:49 am

"they purchased their homes years before the areas near the creek were declared flood zones..."

If you live in a low lying area near a creek, then you live in a flood zone, and there is no excuse to not recognize that fact. Those who failed to buy flood insurance never seem to be shy about asking the government to take care of them, after a flood. Then the government declares the obvious fact that it is a flood zone, with certain restrictions (e.g. ban on basements, required elevation). The government even subsidized the insurance premiums, if one can believe that! [Portion removed.]


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Posted by Crescent Park Dad
a resident of Crescent Park
on Sep 26, 2013 at 11:14 am

Before everyone starts dumping on the OP, spend a few minutes to perhaps understand the actual circumstance (the post does not provide enough details).

CPA made a deal with FEMA - in exchange for expanding the flood zone across the city, a subsidized rate program was implemented. For example, our home was not originally in the "hazard" flood zone until the maps were re-drawn in the mid-90's. So please don't dump on someone who lives in the flood zone until you understand their particular situation...we didn't live in a flood zone until a few years after we bought our house. As part of the deal, our flood insurance is discounted/subsidized by FEMA.

So my question to the OP is whether he/she has investigated to see if their home still resides in a hazard flood zone (was it ever in a flood zone? If you are not in a hazard flood zone, then it would make sense that you are not eligible for the Federal subsidy.


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Posted by Julia
a resident of Professorville
on Sep 26, 2013 at 11:16 am

John, I asked a question about whether other people received such notices and have to go through the trouble of producing certificates of elevation or photographs, not whether flood insurance should be subsidized or not.
[Portion removed.]


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Posted by They lied
a resident of Old Palo Alto
on Sep 26, 2013 at 2:50 pm

Many people live in homes that were not considered to be in flood zones when they bought them. Mortgage lenders will insist you buy flood insurance before or at closing if you do purchase a home in one. After the floods of 1998, the definitions of a flood zone apparently changed, as many homes flooded that were not low-lying or near a creek. One neighbor had a new basement addition flood in 1998, and she is not in a flood plain......BUT, it turned out, that water was seeping in from underneath the basement, because a long-dried up aquifer spilled up after nearly 100 years. Her home insurance company told her that 100-year catastrophic floods are simply occurring less than twenty years apart now, and that everyone, unless they live in the hills, should have flood insurance.


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Posted by palo alto resident
a resident of Embarcadero Oaks/Leland
on Sep 26, 2013 at 4:34 pm

@John - DeSoto is one of the streets that flooded and is no where near the creek. Houses next to the creek on Palo Alto Ave didn't get water, so people were not "in low lying areas".


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Posted by John
a resident of Midtown
on Sep 26, 2013 at 6:13 pm

"DeSoto is one of the streets that flooded and is no where near the creek."

Water always finds the low spot, unless there is a dam in the way.


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Posted by curmudgeon
a resident of Downtown North
on Sep 27, 2013 at 4:30 pm

"many homes flooded that were not low-lying or near a creek"

Most of the world puts its streams in the lowest spots. Palo Alto's proud exceptionalism dictates that we put ours on ridges. Approach any creek, especially SF Creek, on a cross street and you're walking uphill. Check it out in my 'hood on Waverley.


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