Flood Insurance Rates Could Rise In Foster City

Although it's still unclear whether flood insurance will become mandatory for Foster City residents next year, homeowners should be prepared for rising rates, city officials said.

Due to San Mateo County's deficient levee system, the Federal Emergency Management Agency proposed reclassifying Foster City's flood rating to Zone A in 2008 under the National Flood Insurance Program.  That designation would require local homeowners with a federally-backed mortgage to purchase flood insurance, said Kathy Schaefer, a regional FEMA engineer.

Mandatory flood insurance is an unfortunate prospect, said Wayne Bayliff, president of the Whalers Island Home Owner's Association in Foster City. "It's going to be a burden for any homeowner that is required to buy insurance that really isn't necessary. As I understand it we're effectively being required to pay for insurance because of somebody else's problem."

San Mateo County has applied to loosen flood restrictions while it fixes its levees but is still awaiting approval from FEMA.

City officials said they hope FEMA takes its time so that the release of the taxing flood-risk rating will be delayed.

"We are not in a rush to push it with FEMA," said Tricia Toomey, a San Mateo management analyst.

FEMA rebuffed requests from San Mateo County cities to delay distribution of the county's Digital Flood Insurance Rate Map until the South Bayfront Levee Improvement Projects are complete.

San Mateo County has applied to downgrade its flood designation to Zone A99, which would exempt homeowners in the zone from elevation guidelines, reducing insurance premiums, Schaefer said.

FEMA officials are still reviewing that application and Schaefer couldn't predict when the process would be completed. Once resolved, residents would have six months to purchase flood insurance.

City officials encourage residents to buy flood insurance under the current Zone X rate before Foster City falls under the more expensive zone.

Annual premiums range from $119 to $355 for building and contents (without basement or enclosure) under FEMA's "preferred-risk policy." In comparison, high-risk coverage ranges from $477 to $2,633 per year.

Because Foster City is expected to return to Zone X once the levees are fixed, how long the flood insurance would be necessary will depend on when San Mateo finishes construction. 

An assessment district, which was formed last year, funds the $7.5 million levee enhancement projects.

San Mateo plans to start construction by the end of this year and be finished in time for Christmas 2011.