I live in Douglas County Nevada, and according to FEMA, we're all gonna flood!
Ok, we're at 4,500 elevation, and 10 miles to the west, there are granite mountains sticking almost 6,000 feet straight up. On the other side is Lake Tahoe. So let's face it, if one of those mountains falls down, we're all gonna die. (The picture at right is a field using flood irrigation in the springtime 2009. Ranchers here have used flood irrigation on their fields for hundreds of years.)
We also have streams and rivers running through our little valley, and when we have a really bad storm (maybe every 15 years at most) we have flooding of some sort. It doesn't affect every homeowner. Sometimes when we have significant precipitation, we have flash flooding. After all, this is the high desert, and it basically just makes streams in the sand.
We had the pleasure of FEMA visiting our area over the last year or so, and they've decided to change the majority of Douglas County into a floodzone. This means many homeowners are getting notices they must purchase flood insurance for the first time, even though they may live in areas never known to flood....as in, never! And January 19, 2010 is the LAST day to buy coverage under the previous premium rating. If you wait, it could cost hundreds of dollars more.
These premiums can cost anywhere from $300 to a few thousand dollars a year. Flood insurance is a requirement for anyone whose mortgage is backed by the federal government. By the way, more than 50 percent of all mortgages in this country are now guaranteed by Fannie Mae and Freddie Mac.
Douglas County has filed a lawsuit against FEMA, but we have been explicity instructed that we are to use the new maps while the suit is pending. Can you imagine the impact in property values if your home just went from an identifiable flood elevation to a NON-identifiable elevation? And yes, we have lots of those. If a home has a $3,000 flood insurance premium per year, how does that affect value and how far down will it drive the value?
In a struggling market like the Carson Valley, this just seems like someone just twisted a knife in our backs. We'll find a way to get around this, just like we did when the market had double-digit interest rates. But - I can't help but wonder why areas like LA County are now in a floodplain, too. Seems like FEMA is having a money grab - perhaps to lend to Fannie and Freddie? Food for thought.
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About The Author
Christianne Gordon, REALTOR®, CDPE, SFR is a Northern Nevada Real Estate Specialist that can assist you with the purchase or sale of real estate in Gardnerville, Minden, Genoa, Carson City, Dayton, and Reno/Sparks.
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