Florida legislation requires insurance carriers writing windstorm coverage to offer rate reductions, credits or other discounts for certain construction features that lend in minimizing risk and/or damage due to windstorm activity (tropical storms and hurricanes). In order to process these discounts, a Wind Mitigation Verification must be conducted on the property. For properties built in 2002 or newer, the agent should automatically be awarding these discounts (Dade & Broward).
This legislation also requires insurance carriers to notify policy holders about the inspection, the discounts and the actual potential savings. Unfortunately, the carriers are non-compliant with this law as well as others that lend in reducing the premiums being paid by property owners. In fact as per Sen. Geller, 80% of the carriers writing windstorm coverage in Florida have yet to 100% comply with current law in which mandates the reduction of premiums by over 22% in light of the state's reduction in the re-insurance costs.
The problem with the legislation is that there is no check-and-balance. Right now, the Office of Insurance Regulation has no idea how many policy holders are receiving discounts or for those that are, if the discount(s) being applied are of the deserved amount.
The average savings, after the inspection, for our clients has been over $1700 per year with some over $3200. Wow, that is a lot of money! For the average condo owner, it's $250. Still a significant savings. In fact, we have yet to see a home that did not qualify for a rate reduction. In fact, in our advertising we actually guarantee that the property owner will save on their current policy.
So where is this going....?
I ask that you write and support an amendment to current legislation that would mandate this verification for any new or renewal for a windstorm policy in which the property was built prior to 2002, unless the verification has been performed within the last 5 years. The purpose of the amendment is to mandate that all policy holders, regardless of carrier, get these rate reductions as mandated by law.
Please direct your demand to one or all of the members of the Florida House of Representatives Committee on Insurance:
D. Brown, R. Poppell, T. Fields, C. Domino, A. Gibson, E Gonzalez, A. Hayes, J. Long, M. Needelman, B. Nelson, S. Randolph, D. Ross, R. Schneck, P. Taylor
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