Homeowner Premium Discounts for Storm Mitigation Coming to La.

January 23, 2008

Insurance premium discounts will soon be available to homeowners who install storm mitigation improvement devices or build or retrofit their homes to comply with Louisiana’s Uniform Construction Code, Commissioner of Insurance Jim Donelon announced.

Insurance premium discounts for homeowners will be available in 2008 after the insurers’ rate filing with the Louisiana Department of Insurance between March 31, 2008 and Jan. 1, 2009.

This rate filing will include the new premium discounts when an owner builds or retrofits a structure to comply with the requirements of the State Uniform Construction Code, installs damage mitigation improvements, or retrofits their property utilizing construction techniques demonstrated to reduce the amount of loss from a windstorm or hurricane.

Premium discounts apply to one or two-family owner occupied homes and modular homes. They do not apply to commercial or commercial residential properties with three or more units, or to manufactured or mobile homes.

Premium discounts are granted based on damage mitigation improvements and construction techniques listed on the Louisiana Hurricane Loss Mitigation Form. These damage mitigation improvements and construction techniques include but are not limited to: buildings designed to code; roof bracing; secondary water barriers; opening protection; roof to wall strength; roof deck attachment; roof covering and roof covering performance; wall-to-floor-to-foundation strength; window, door, and skylight strength; and other mitigation improvements and/or construction techniques that the insurer has determined to reduce the risk of loss due to wind.

Inspection and certification must be performed by a qualified professional who is a building code enforcement officer, registered architect or engineer, or a registered third-party provider authorized by the Louisiana State Uniform Construction Code Council to perform building inspections.

Proof of eligibility for premium discounts must be provided by the insured.

The insurer may require completion of the Louisiana Hurricane Loss Mitigation Form and appropriate documentation demonstrating compliance with the State Uniform Construction Code and/or appropriate documentation attesting to the mitigation improvements made by the insured that reduce the amount of loss from a windstorm or hurricane.

These may include, but are not limited to permits, certificates of occupancy, inspection reports or receipts. If deemed necessary, the insurer may request additional documentation from the homeowner or the insurer may perform its own independent inspection.

The department is posting a brochure on homeowner storm mitigation incentives on its Web site at www.ldi.state.la.us under the publications.

Source: Louisiana Department of Insurance

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