Flood insurance costs drop for Palo Alto property owners

April 20--Palo Alto residents and businesses will see a reduction in their flood insurance bills this year.

The discount is attributed to a higher rating the city of Palo Alto has received from the Federal Emergency Management Administration because of its flood management efforts, according to City Manager James Keene.

Palo Alto now has a rating of "six" instead of "seven," which increases the discount property owners receive on premiums to 20 percent from 15 percent.

Palo Alto is the first city in Santa Clara County to achieve the 20 percent discount level, Keene said.

There were 3,319 policies issued to property owners in Palo Alto last year who collectively paid $3.95 million in flood insurance, Keene said. The increased discount means a savings of about $875,000 the coming year.

"So lots of folks will at least see some reduction," Keene said.

The change will apply to policies issued or renewed about May 1.

The discount is offered through the Community Rating System, a voluntary program under the National Flood Insurance Program that "allows communities to earn flood insurance premium discounts for their residents and businesses by conducting floodplain management activities that exceed NFIP minimum requirements," according to city staff.

The rating system ranges from 10 to 1 and each incremental improvement qualifies for an additional 5 percent discount on flood insurance premiums.

The city participates in a countywide "Program for Public Information" campaign in which cities work together to deliver messages about flood risk reduction as a way to improve their rating.

Keene said the improved rating was the result of hard work from the city's Office of Emergency Services, Parks and Recreation Department, Development Services Department and the regional San Francisquito Creek Joint Powers Authority.

According to city officials, all of Palo Alto is in a flood zone. Most properties are in an area either outside the 100-year flood zone but inside the 500-year flood zone or within the 100-year flood zone but shallow enough to not be a hazard. Other parts of the city are in Special Flood Hazard Areas, where a 100-year flood poses a special hazard.

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