July 19, 2007

Florida law requires residential insurers to offer discounts for commonly accepted construction techniques that make a structure less likely to sustain major damage from a hurricane. Discounts vary from insurer to insurer, from areas located near the water to inland areas and according to other factors, including type of  construction.
Minimum discounts have been established by the Office of Insurance Regulation and outlined in a rule adopted by the Financial Services Commission last fall.

 OIR was instructed by the 2007 Florida Legislature to update the so-called Wind Relativities Study which is the basis for the discounts. This will be done and insurers will be making filings reflecting updated discounts next spring. In addition, OIR was instructed to develop a formal system of discounts for businesses. Currently, hurricane loss mitigation underwriting is part of the regular underwriting for a business risk and the rate should reflect the mitigation worthiness of the building.

The Department of Community Affairs has established the Wind Insurance Incentives Internet Site, an "Internet calculator" allowing consumers and the media to develop estimates for discounts for a particular home in a particular region. Again, these are estimates and consumers should contact their insurance agent or company for specific discount information.

The DCA Internet site is available from this link:
DCA Wind Insurance Incentives Internet Site