FLORIDA INSURANCE COMPANIES BY LAW HAVE TO GIVE DISCOUNTS !!
The state legislation adopted provisions for a new statewide building code (the 2001 Florida Building Code), which became effective on March 1, 2002. The same legislation included a requirement for insurance companies to provide property insurance discounts for homes that have construction features that reduce the losses in windstorms. Each insurance company was required to submit new rates by February 28, 2003 and include discounts for wind damage reduction (mitigation) construction features.
The discounts are justified because stronger, more wind-resistive houses have lower windstorm losses, and lower windstorm losses means reduced costs to insurance companies. The insurance discounts provide some financial incentives for homeowners to strengthen their existing homes and for new construction to be built to the strongest options in the Florida Building Code.
These new insurance rate discounts in Florida begin to take place in 2003. They apply to both existing construction (houses built prior to 2002) and new construction built to the new statewide Florida Building Code (FBC).
To qualify for these discounts, most insurance companies require a certification of the key construction features.
The cost of the Windstorm Inspection or a Citizens Insurance Roof Inspection and Certification is now only $60.00 for any size home.
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What construction features qualify for discounts from most Florida insurance companies?
The following items are building features that reduce wind damage for which many insurance companies offer wind premium discounts.
1. Roof coverings, such as shingles that meet the FBC Requirements.
2. Roof decks that have been installed with large nails and close spacing.
3. Hurricane clips/straps that hold the roof structure to the walls.
4. Protection of Openings such as windows and glass doors with impact resistant glazing or other protection systems.
5. Secondary Water Resistance that prevents the roof from leaking if the roof covering is blown off in a windstorm.
6. Newly Constructed Homes built to the Florida Building Code since March 1, 2002
7. Homes built to the South Florida Building Code in Miami-Dade and Broward Counties after 1994.
Please note that insurance companies may have more features that qualify for credits such as doors and gable end bracing.
What is the value of the Insurance Discounts?
The dollar value of the discounts depends on three primary factors.
1.The number of wind resistive construction features present on your home - Some individual features may qualify for 10% discount and others only a few percent. The more wind resistive features you have, the higher total discount will be. The discounts can be as high as 40% or more of the wind portion of the insurance premium. (The portion of your premium that is for wind losses is provided on your policy declaration page).
2.The location of your home-Wind insurance rates vary by location within the state. If your wind insurance rates are high, then the percentage discounts will result in more dollars for a house in a high rate area versus the same house in a lower rate area.
3.The value of your home- Discounts are calculated as a percentage of the wind premium for your specific home. High value homes have higher premiums, hence, the dollar value of the discounts will increase as the value of the home increases.
