FACTS ABOUT WIND INSURANCE

1. Why do insurance companies offer 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.

2. What construction features qualify for discounts?

The following figure shows typical features that reduce wind damage. Over 90% of existing houses have one or more of these wind resistive construction features and may qualify for some insurance discounts. In addition, houses built after 1994 in Miami-Dade or Broward Counties and houses built after 2002 in the rest of the state generally have many wind resistive construction features and will likely qualify for significant credits.

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. Roof Design, Hip roofs seem to divert the stronger winds and
therefore sustain less damage.

7. Garage Doors require reinforcement. Shutters have little value
when the garage door is not protected.

8. Newly Constructed Homes built to the Florida Building Code since
March 1, 2002



3. What is the value of the Insurance Discounts?

1. The number of wind resistive construction features present on your home
a. 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 30% 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.
                                                                   






















































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2655 Le Jeune Rd
Penthouse 2, Suite E
Coral Gables, FL 33134

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Fax: (305) 443-3974

Email
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DIPLOMAT INSURANCE WIND COVERAGE.