Currently, most property owners in Pleasant Hill were grandfathered into a subsidized or discounted rate because they purchased flood insurance prior to the Flood Insurance Rate Map (FIRM) update in 2003. New property owners, who were not able to purchase insurance at that time, currently pay a standard rate (which reflects their true flood risk).
How will this affect property owners in Pleasant Hill?
If you have a subsidized (grandfathered) policy on your primary residence in a flood zone, then you can keep the subsidized rate until: 1) the property is sold (non-transferrable); 2) the policy lapses due to lack of payment; 3) you suffer repeated flood losses; 4) you purchase a new policy from another insurance carrier.
If you have a subsidized flood policy on: 1) non-primary residences (rental), 2) have experienced severe or repeated flood losses in the pasts (filed flood claims); or 3) are a business or non-residential/commercial property, then you will see 25% annual increase on your policy until the rate meets the new insurance rate premium (standard rate). In order to determine your new standard rate, you will be required to provide an Elevation Certificate to the insurance company, which they will use to calculate the new standard rate. In order to obtain an Elevation Certificate, you will need to hire a CA licensed surveyor to determine your property’s elevation in relation to the flood elevation. This rate revision program will take effect starting this year (October 1, 2013).