Some residents of McCloud, CA are reacting with disbelief as they open their floor insurance bills and find that rates have gone up from $400 per year to $2,000 per year, or more. The homes we know are affected so far on are Quincy Street by the old mill.
My wife and I own a home in McCloud, and were one of the first ones to be hit when we refinanced our house. For many in the community, an increase of this type is uneconomical.
The word on the street is that these increases were prompted by Hurricane Sandy. The federal government flood insurance fund took a massive hit, and FEMA was instructed to develop flood insurance rates that supposedly reflected the risk of the area.
Apparently, the town of McCloud was cut off by a flooding Ash creek about 100 years ago (See this link
Feel free to leave a comment if you want to be updated on this situation.