Break possible on cost of flood insurance

CEDAR RAPIDS - The city is spreading the word about a program that will help about 570 property owners to pay lower flood insurance premiums.

The residential properties were previously outside the 100-year and 500-year flood plains but now are considered in the danger zone, requiring many of the owners to pay an average of $1,100 a year in unexpected premiums for flood insurance.

City officials want to help absorb some of that financial shock and ease property owners' transition to the new payments through a Federal Emergency Management Agency-backed program that allows qualifying applicants to pay less than the standard insurance premium for three years.

The program debuted in January, and two property owners have been through the FEMA program as a sort of test to determine its ability to generate savings.

Joe Mailander, civil engineer for Cedar Rapids, told the Flood Recovery Committee during its meeting Friday that the program had “great results” for those two properties and he hopes more eligible owners will apply for reduced annual premiums.

“We are trying to notify everyone in the city,” Mailander said. “We're not only notifying property owners, but local insurance agents, too.”

Once the word is out about the possible insurance premium reductions, Mailander said, “the city will step back.”

“It will be an issue between the property owner and the insurance company,” he said.

The 571 properties that previously were outside the 100-year and 500-year flood zones were moved into the 100-year zone after FEMA in April 2010 accepted revised flood maps that changed the zone boundaries.

The two property owners who worked with the city and FEMA to lower their insurance premiums live in the Vinton Ditch area. One has received confirmation that his annual premium will drop from $977 to $324.

The other person expects confirmation next week that his premium will be reduced and a refund check will be issued, according to Mailander.

The city is planning to reach property owners who might qualify for the program by sending letters on Aug. 1 and holding an informational meeting Aug. 24 about flood insurance discount programs.

A FEMA representative will be at the meeting, and both property owners and insurance agents will be invited to attend so they can work toward rate reductions independently, Mailander said.

Recovery Committee Chairman Don Karr on Friday praised the initiative as one of the many ways city officials are advocating for residents still trying to get back on their feet after the 2008 flood.

“This will help a lot of people,” Karr said.