Congresswoman Doris O. Matsui announced that FEMA has, at her request, agreed to allow all homeowners in the Natomas area that have signed up for flood insurance at the Preferred Rate Policies prior to Dec. 8 to be able to renew those policies when they expire at the Preferred Rate Policy price for one additional year. “This is an important step towards ensuring that residents have necessary flood insurance, while protecting hardworking Sacramento families from dramatically increased flood insurance prices,” said Rep. Matsui. “I am glad that FEMA agreed to my request of an additional one year extension of current rates. This decision reflects a sensible response to an ongoing issue that has caused legitimate concern within the community.”

On Nov. 17, Congresswoman Matsui wrote FEMA Administrator David Paulson asking FEMA to allow local residents impacted by changing flood insurance maps to be able to get an extension on Preferred Rate Policies, which will save homeowners over $900 each year. Because of the delay in implementing the new flood zone map for areas of Sacramento and Sutter Counties, FEMA has agreed to Congresswoman Matsui’s request to give residents in these areas an additional one year extension in Preferred Rate Policies.

In her letter, Matsui pointed out that homeowners in Natomas voted to assess themselves to pay for the local share of the flood control work. While they voted overwhelmingly to pass the assessment for flood protection, it is yet one more financial burden they have to face during these tough economic times.

This new announcement from FEMA means that anyone that currently has a Preferred Rate Policy can renew it at that level next year, saving homeowners hundreds of dollars. For example, if you had purchased a lower cost Preferred Rate Policy flood insurance plan on Nov. 1, it would have expired November 1, 2009. FEMA will now allow that policy to be extended at the Preferred Rate Price until Nov. 1, 2010.