Discount on Homeowners Insurance Policy

The State of Florida recently passed legislation requiring insurance companies to offer their policy holders the opportunity to receive a "Building Code Discount". In order to receive this discount the homeowner must hire a licensed contractor/engineer to conduct an inspection of the home. Your insurance company should be able to provide you with a list of approved inspectors.The inspector completes a "Windstorm Loss Reduction Rating Plan Survey". Most of the survey involves the exterior, but they will need access to your crawl/attic space. The entire process takes only an hour or two, and the survey questions primarily relate to compliance with Florida Building Codes for the home's roof and windows. The survey is then submitted to your insurance carrier and the amount of discount is determined based on the survey results. Discounts can be substantial, possibly ranging from 10-50% of the annual premium.The inspection is done only once and the discount applies to the lifetime of the policy. The average cost of an inspection is $150 for a home of 3,200 sq. ft. or less. The insurance industry has also informed us that:

• The program also applies to condominiums, so condo associations may want to consider getting such an inspection (inspection cost will be more than $150). It generally does not apply to commercial buildings since these are underwritten on an individual basis based on construction and other factors.

• There is no potential penalty or increase in premium, i.e., your premium should not increase as a result of the inspection. It is unknown whether a possible exception to this rule could be falsifi cations on the original policy application that are discovered during the inspection.

• Homeowners with older homes are more likely to see minor or no discounts, since their home was probably built to lower wind standards.

Please contact your insurance agent so that you may benefi t from this information.