Flood Insurance Rate Hike Is Canceled

Federal officials announced Thursday that they have shelved plans to require higher rates of flood insurance for property owners in a new flood hazard zone in southeast Los Angeles County, four days before such insurance will become mandatory.

Rates for the flood insurance were to roughly double when the 66-square-mile zone takes effect Monday. Officials at the Federal Emergency Management Agency spent months encouraging property owners to buy flood policies early so they could lock in the lower rates.

But as the deadline drew near, property owners and politicians pressured FEMA to make premiums more affordable in the low-to-moderate-income neighborhoods in the zone, according to FEMA officials.

“There was increasing concern expressed in the community, by local officials and, quite frankly, by congressional people about the burden this would place on people,” said Vallee Bunting, FEMA’s public affairs director. “As the deadline approached, it became clear that it was prudent to offer a price break to people.”

Creation of the zone reflects officials’ fears that the Los Angeles River and its tributaries would not adequately protect portions of 14 communities along the southern stretch of the river in the event of a 100-year flood. FEMA officials do not want to face the prospect of paying millions of dollars to cover property losses in case of such a flood. Until now, the residents have not been required to buy any flood insurance.

After Monday, property owners in the zone who have federally regulated mortgages will still have to purchase flood insurance, which for most homes can run from $91 to $454 a year, depending on the amount of coverage. Those who do not purchase insurance face the prospect of lenders buying pricier policies for them and passing on the cost, FEMA officials said.

FEMA’s announcement comes after angry residents and business owners assailed agency and other local officials at recent public meetings. Many residents said they only heard about the insurance requirements in the last few weeks and could not afford to pay a full year’s premium up front to qualify for the cheaper rate.

FEMA officials also said Thursday that they will ask private insurance firms to allow customers to pay for premiums in installments.

Critics of the new flood zone and its insurance requirements welcomed the announcement but said that even the cheaper rates will prove too expensive for many.

“You have senior citizens on fixed incomes who are afraid they are going to lose their homes,” said Rep. Juanita Millender-McDonald (D-Carson), who has asked FEMA to postpone implementation of the flood zone.

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Flood Zone

About 66 square miles of southeast Los Angeles County is about to be included in a new federal flood-hazard zone. Officials contend that the Los Angeles River and its tributaries no longer adequately protect the area against major flooding.

Sources: FEMA, L.A. County Dept. of Public Works, Army Corps of Engineers