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Some homeowners' insurance up 300 percent Some homeowners' efforts to mitigate increases in recent hurricane-driven insurance premiums are falling short and their bills are piling higher and higher. Recent insurance premiums have been reported as doubling and even tripling. "Usually they have some sticker shock at first, but most understand that the recent storm activity is to blame and are open to looking for ways to lower the premium," said Robert Koonce of State Farm Insurance. Some homeowners received increases in the neighborhood of 300-400 percent, according to Koonce, and insurance companies are urging homeowners to make physical improvements to bring their property up to 2001 Florida Building Code minimum requirements to lower premiums. "Those codes go a long way to preventing damage to a home in the event of a storm. They harden a house to prevent the two major causes of claims: rain from shingle loss and broken windows," said Koonce. One of the code roof requirements includes building a hip roof, a roof that is sloped all sides like a pyramid, which can save a homeowner up to 41 percent on his or her premium. Another factor in reducing claims includes adding window protection like shutters and impact-resistant glass. Adding adequate shutters or special impact resistant glass to a home can save State Farm customers up to 17 percent. Koonce explains there is a difference between wind-resistant windows and impact resistant windows. "Testing for wind-resistant windows consists of putting a window through a wind tunnel at 140 mph winds for four or five hours. For impact-resistant windows, they do the same but put a two-by-four through the window for four to five hours and tests how it holds up," said Koonce. According to insurance guidelines, if a customer elects to replace current windows for impact-resistant windows, they must be installed by a licensed contractor, must meet 2001 Building Code Requirements and must have a certificate of compliance sent from the contractor or manufacturer. Although some homeowners haven't made a single claim throughout any hurricane, they are still seeing drastic increases in their premiums. "I have heard this a lot out in the community. Unfortunately, property insurance does not work this way. When you insure your home, your premium is being pooled with people who are also insuring their home," said Koonce. "Think of it on a smaller simplified scale. If five families pay, say $50,000, into a pool of money to protect their homes and two homes suffer a losses totaling $500,000, then everyone in the pool will have to pay more money in order to cover the shortfall even though three of the homes suffered no damage." Citizens Property Insurance Corporation recently released a statement claiming to offer discounts for impact-resistant windows. "Credits for impact resistant windows have always been apart of Citizens' mitigation program," President Bob Ricker said. "But, in order to receive the credit, all openings, including doors, must be protected." Additionally, policyholders with specific questions should contact their insurance agent to ensure a proper credit. Premium discounts of up to 45 percent are available for Citizens policyholders who have mitigated their homes, Ricker said. The Florida Department of Financial Services urges homeowners to take advantage of the My Safe Florida Home Program, a program that offers eligible homeowners free home inspections for their homes to reduce hurricane damage exposure. |
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