City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, Interim City Manager
BY: Mike Willett, Public Works Director
MEETING DATE: December 3, 2024
ITEM NO: 6.6
SUBJECT: 2024 Flood Insurance Coverage Assessment (FIA) for City of Patterson
RECOMMENDATION
Informational Item - 2024 Flood Insurance Coverage Assessment (FIA) for City of Patterson
BACKGROUND
Flood damage is typically not covered by most standard homeowner or business insurance policies. To help protect individuals from the financial impact of flooding, promoting flood insurance should be viewed as a shared community responsibility, alongside efforts like building flood control infrastructure and regulating new development in flood-prone areas. Communities enrolled in the Community Rating System (CRS) have a unique opportunity to highlight the availability and importance of flood insurance as part of preparedness efforts. One of the most effective ways to convey this message is by tailoring it to local audiences and reinforcing it through various channels. As a result of the city’s participation in the CRS program, policyholders currently receive a ten percent discount on their flood insurance premiums. To raise awareness about flood insurance, staff have completed a Flood Insurance Coverage Assessment, and it is the city’s intent to update this assessment every three to five years, or sooner if circumstances change.
ANALYSIS
For the current assessment, staff initiated the process with the goal of identifying where flood insurance policies are concentrated and determining what actions are needed to raise awareness about the importance of flood insurance. To gather the necessary data, staff obtained the Insurance Zone and Insurance Occupancy sheets from the region's ISO/CRS Specialist. This data was used to calculate the figures presented in Table 1 and Table 2. Table 1 provides a summary of policies by occupancy classification. In Patterson, most policies are for single-family homes, with an average coverage amount of $238,248. The maximum coverage available through the National Flood Insurance Program (NFIP) is $250,000.
Table 2 provides a summary of flood insurance policies by insurance zone. Most of these policies are in areas most vulnerable to flooding, particularly those prone to ponding. There are 67 policies in this zone. After reviewing the data, staff concluded these areas lack sufficient flood insurance coverage and require further outreach efforts. According to the ISO data sheets, only 56% of properties within the Special Flood Hazard Areas (SFHA) have flood insurance. Our recommendations will be based on this coverage rate.
The city has been part of the CRS program since May 2015 and already exceeds the requirements set by the NFIP. However, encouraging the public to obtain additional insurance, especially when it is not always mandatory, can be a challenging task. Despite this, we are committed to enhancing our efforts to promote the flood insurance program and other property protection measures.
Planned Initiatives: Staff will enhance their internal Program for Public Information (PPI), an ongoing initiative focused on developing and delivering key messages to the community about vital issues related to flood safety and the preservation of the natural functions of floodplains.
Both current and future strategies include:
• Targeted Mailings: Send personalized letters or brochures to homeowners and businesses in flood-prone areas, detailing the importance of flood insurance and the benefits of the NFIP.
• Neighborhood Outreach: Organize door-to-door campaigns or community meetings in high-risk areas to directly engage residents and provide them with resources on flood insurance.
• Digital Media Campaigns: Use social media platforms, the city’s website, and other digital channels to share educational content about flood insurance, such as infographics, videos, and testimonials from residents who have benefited from coverage. • Collaborations with Real Estate Agents and Banks: Partner with local businesses and real estate agents to distribute flood insurance information to clients, especially those purchasing property in flood-prone areas.
• Public Service Announcements (PSAs): Run radio, TV, or online PSAs that emphasize the importance of flood insurance, especially for those in flood-prone areas or the SFHA. • Email Newsletters: Send regular email newsletters to residents, providing updates on flood risks, insurance options, and any available discounts or incentives through the CRS. • Incentive Programs: Offer incentives or discounts for those who purchase or renew flood insurance, leveraging available CRS discounts or other local programs to encourage signups. • School and Youth Programs: Educate the younger generation about flood risks and insurance through school programs, presentations, or community youth activities, helping them understand the importance of emergency preparedness. • Flood Insurance Awareness Week: Dedicate a specific week each year to raise awareness about flood insurance through events, social media campaigns, and partnerships with local media outlets.
By using a combination of these strategies, the city can more effectively raise awareness and increase participation in flood insurance programs.
FISCAL IMPACT
There is no additional fiscal impact to revise the city’s PPI. Funds are budgeted every year to support the city’s participation in the CRS program.