La Conner flood insurance rates likely to increase 15 percent

Jan. 26--LA CONNER -- Property owners in La Conner will pay an extra 15 percent for flood insurance after the Town Council voted Jan. 10 to leave FEMA's voluntary Community Rating System program.

Insurance premiums were set to increase 10 percent after the town was downgraded in the program in early January, and the other 5 percent increase will come when the town formally withdraws from the program.

The program allows communities that rate well in floodplain management activities to get reductions in flood insurance premiums, according to FEMA.

Planning Director John Doyle said the town was downgraded because of new FEMA requirements and not because of changes in the town's floodplain management activities.

Because of the new requirements, Doyle said the town's rating dropped from a 7 to a 9 -- 10 being the worst -- resulting in a 10 percent increase in premiums.

Doyle said the downgrade was due to losing points on flood threats La Conner does not face.

"Instead of getting those points because we don't have those threats, we are denied those points and are immediately downgraded ... when we weren't qualified for those points to begin with," he said.

Mayor Ramon Hayes said it was a bit of shock when the town was notified of the downgrade.

"Nothing has changed on the town's end," he said. "We would really like to know why they (FEMA) have changed their dynamic when we've complied with everything."

Doyle said he thinks the changes in the requirements are being done so FEMA can downgrade communities in order to raise insurance rates.

As of 2015, La Conner's rating of 7 resulted in $216,000 spent annually by property owners on flood insurance premiums.

Doyle said two-thirds of property owners in La Conner have flood insurance.

La Conner has been part of the Community Rating System since the mid-1990s, Doyle said.

After the town was downgraded, Doyle said it is no longer worth the tens of thousands of dollars spent on town staff resources to remain in the program.

Staff handle paperwork and documentation with FEMA.

"It's not cost effective to participate any longer," he said.

Doyle said he will be sending a letter to FEMA in the next few weeks notifying it of the town's decision to withdraw from the program and letting it know the town believes it is being unfairly penalized.

"We put in effort to maintain status in the program and it (the new manual) basically put us back to zero," he said.

Doyle said he wants representatives at the federal level to be aware of this issue.

"(The system) is vastly disproportionate and unfair," he said. "The burden is being placed on those who can least afford it."

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Reporter Marilyn Napier: 360-416-2149, mnapier@skagitpublishing.com, Twitter:@Marilyn_SVH, facebook.com/MarilynReports

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