What effect will the outcome of the flood protection assessment measure have on flood insurance?
Passage of SAFCA’s proposed measure would be a major step forward in restoring sanity to Sacramento’s flood insurance needs. We would expect additional carriers to reenter the excess flood insurance market which would ultimately lead to lower costs. Insurance rates are very fluid and are always moving up or down in cycles. This is due to many factors such as recent claims experience, interest rates and the political environment. The passage of SAFCA’s measure would be perceived by underwriters as a very positive step forward. Sacramento’s flood insurance rates would be lower after implementation of the upgrades than had the measure failed. If the SAFCA measure is ultimately rejected by voters, the Sacramento region will continue to be viewed as a high risk by flood insurance carriers. The problem will not be one of cost, but rather of availability. We already are experiencing a lack of capacity in the Sacramento region. Will flood insurance rates be affected by the completion schedule
