Lloyd's weathers the storm

Few industries have suffered as much through the economic crisis of the past six months as the insurance industry. But Lord Peter Levene, chairman of Lloyd's of London, the storied insurance market founded in 1688, feels his organization is in good shape to survive and prosper. He is less certain about how long the crisis will last or how individual investors should respond to the market crash. Levene, who has worked in the defense industry, overseen turnarounds in railroads and commercial real estate, and served the British government in various capacities, recently spoke with Globe reporter Jeffrey Krasner.

FEMA gives officials early look at new flood maps

By Julian J. Ramos/Staff Writer

Local officials have gotten a sneak peek at the long-delayed new version of maps outlining areas where Santa Maria Valley property owners would be required to purchase costly special insurance because they are in the potential flood plain for the Santa Maria River.

However, the actual preliminary maps aren’t expected to be released until later this spring for official review by local officials.

Tom Fayram, deputy director of the Santa Barbara County Public Works Department, said Federal Emergency Management Agency officers unveiled proposed new maps that are “not much different” from early versions released a year ago.

Last April, local officials reviewed the maps, which showed that much of Santa Maria, including 20,000 parcels and 17,000 structures, would be designated as in the flood plain. That would trigger a flood-insurance requirement for anyone with a federally backed mortgage.

The maps revealed Friday are likely to be similar “unless something changes significantly,” he said

According to a FEMA timeline, the maps won’t be finalized for at least a year.

After the preliminary maps are issued, a 30-day review period with local officials and the public begins. That will be followed by a 90-day period to meld flood insurance study results into a preliminary draft flood insurance rate map, and then another 90 days for public review and appeals.

The formal six-month period for adoption begins after any appeals have been resolved.

All together, the process will take a year or more before the new maps are effective and the mandatory flood insurance purchase requirements take effect.

Before the new maps become effective, home and business owners who buy flood insurance can purchase it at both a lower cost and risk level, so the timing is important. The cost of flood insurance could vary from $320 to $2,000 per year.

The group of local officials included Rick Sweet, Santa Maria’s utilities director, who couldn’t be reached for comment Friday.

Next month, Sweet and Mayor Larry Lavagnino are scheduled to fly to Washington, D.C., to meet with congressional representatives and other officials about fixing the Santa Maria River Levee.

The levee was built between 1959 and 1963 by the U.S. Army Corps of Engineers as part of its Santa Maria Project, which also included Twitchell Dam and reservoir. Once completed, the levee was handed over to Santa Barbara County, and the Board of Supervisors oversees the flood control district.

The levee is made of river sand formed into a berm and fronted with an 18-inch rock face. However, the rock has been damaged almost every time the river fills with winter rain. If the rock washes away, there's nothing to keep the sand in place or keep the structure from failing.

County officials have said levee deterioration is because of inadequate design by the Corps, not lack of maintenance by the county.

The last total levee breach was in 1998.

January 18, 2009