This page contains information for consumers regarding premium
discounts that are offered by insurers to policyholders who harden
or reinforce their homes against wind damage.
What's the story?
In 2005 the Florida legislature passed a law requiring all
residential property insurance companies to file with the Office of
Insurance Regulation (Office) a range of premium discounts they
offer customers who live in homes of certain construction types or
who apply loss mitigation devices (like shutters) to their homes.
Accordingly, the Office sent the following notice to all residential
property insurance companies on December 8, 2005:
Informational Memorandum - Premium Discounts for
Hurricane Loss Mitigation instructing them to electronically file their
discounts with the Office and to start sending the list of discounts
to all new and renewed policies starting on February 1, 2006.
Commissioner McCarty recognized this was a good first step, but
thought the wide ranges of discounts offered were not helpful for
Floridians who need to know exactly what the discounts would be to
make an informed decision on whether or not to spend money on
retrofitting their homes. The Commissioner also thought the
discounts should be higher, even doubled because of an engineering
report conducted for the Florida Department of Community Affairs.
The report demonstrated that recognized loss mitigation devices are
much more resistant to damage than previous data indicated. Click
here if you would like to view the research document on which the
new higher discounts are based:
Therefore, in December 2006, the Office promulgated
Rule 69O-170.017 which required all property insurers to provide
to the Office higher discounts in their insurance rates for
policyholders who had recognized loss mitigation devices on their
homes no later than March 1, 2007. The Rule requires insurers to
send a list of those discounts with exact dollar savings to all new
and renewed policyholders. Insurers must start sending the “Notice
of Premium Discounts for Hurricane Loss Mitigation” form (OIR-B1-1655)
to new and renewing policyholders starting September 5, 2007.
In 2008, the Office commissioned
another study to evaluate windstorm loss relativities for
construction features involving the analysis of damage and loss data
from the 2004 and 2005 Florida hurricanes.
Once I know what my discounts would be, how do I prove
to the insurance company I have these features on my home?
Consumers can contract with a licensed inspector to examine the
home using the official
Uniform Mitigation Verification Inspection Form. This form must
be accepted by all licensed residential property insurance companies
In either case, the homeowner should take the completed inspection
form to their agent to begin processing the policy discounts.
What if my agent or insurance company refuses to accept the
inspection results submitted on the proper form?
Call the Department of Financial Services’ Consumer Hotline
1-877-MyFLCFO (877-693-5236) (In Florida) or 850-413-3132
(Out-of-State) to report what happened.