The California Department of Insurance (CDI) has announced the launch of a community-based flood program that will provide payouts if floodwaters reach a predetermined level. The initiative, which is the first of its kind in the state, is part of broader efforts to address increasing flood risks driven by climate change, according to a report from AM Best. The program is set to begin in Isleton, a small town in Sacramento County with fewer than 1,000 residents, according to US Census Bureau data. The town was selected due to its location in a 100-year floodplain, making it particularly vulnerable to flooding, according to CDI. The new flood program will function separately from existing insurance policies and is intended to supplement current coverages. In the event of a significant flood, the program will provide “relatively small” payouts to residents.

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