The city of Watsonville is in the Pajaro River floodplain. Our residents living in this floodplain are required to carry flood insurance, which until now have been partially subsidized by the federal government. Due to reforms within the National Flood Insurance Program, these rates are rapidly increasing because of the Biggert-Waters Act, which will phase out the portion paid for by the federal government and shift the full cost to the property owner by late 2014.
Congress created the National Flood Insurance Program in 1968, making flood insurance available to homeowners for the first time. In 1973, the Flood Disaster Protection Act made flood insurance mandatory for protection of properties in special flood hazard areas, like the Pajaro River floodplain. Many homes and businesses received subsidized rates that did not reflect the properties' location in a high-risk area.
On July 6, 2012, the Biggert-Waters Act reauthorized the NFIP for five more years, but with significant changes and higher costs to property owners. The BWA requires changes to all major parts of the program including flood insurance, flood hazard mapping, grants, and floodplain management. Due to catastrophic events like hurricane Katrina and Super storm Sandy, the BWA has changed subsidized premiums and proposed changes (implementation began January 2013) to respond to the rising costs and consequences of flooding.
The Biggert-Waters Act of 2012 is directly impacting the residents living in Watsonville by raising insurance premium rates by 25 percent of the current policy rate until the policy meets full-risk ratings. As an economically disadvantaged community, our residents have an average median income of $15,000 -- less than half of the state average. It is challenging for residents to now pay for policies that have increased three to four times what they originally paid on an implementation schedule that FEMA has outlined. A reality for some residents is re-evaluating their mortgages and potentially having to walk away from their homes.
To address this issue we have written letters to our federal representatives, supporting the Homeowners Flood Insurance Affordability Act of 2013 that has been proposed by the U.S. Senate and the companion bill in the House. During this time FEMA will have adequate time to assess the economic impacts and affordability of the Biggert-Waters Act. The combined bill will ensure that future increases are economically feasible for residents in Watsonville.
As a homeowner you budget for unexpected cost. However, the elevated costs that have been implemented by the Biggert-Waters Act are nearly impossible for any homeowner to add to their budgets -- especially in this economy. We need to look to our representatives to ensure that we are able to live in our homes and have affordable flood insurance.
What You Can Do: Maintain your current flood insurance! If your policy lapses, you will be responsible for the higher rates automatically. Consider getting a flood elevation certificate. To obtain a flood elevation certificate you will need to contact a licensed land surveyor. You can find more information about licensed land surveyors at the following website: www.bpelsg.ca.gov. In some cases, obtaining a flood elevation certificate can lower your premium payment.
And most importantly, write letters to your Federal representatives listed below. Describe the economic impact of Biggert-Waters Act legislation on our community and ask them to support the Homeowners Flood Insurance Affordability Act of 2013:
112 Hart Senate Office Building
Washington, D.C. 20510
331 Hart Senate Office Building
Washington, D.C. 20510
U.S. House of Representatives
1221 Longworth House Office Building
Washington, D.C. 20515
Karina Cervantez is the mayor of Watsonville.
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