Fla. Legislation Would Require Insurance Companies to Disclose ‘Hurricane-Preparedness’ Discounts

Legislation now working its way through the Florida House and Senate would require insurance companies to disclose discounts they offer for policyholders who make their homes more resistant to hurricane winds. At present, although insurance policies offer deductions of as much as 43 percent for hurricane-proofing a home, few homeowners know about the provision.

“The discounts are being provided, (insurance companies) just aren’t giving the information on how to get them,” Bill York, Orlando-based director of building evaluations for Applied Research Associates Inc. told Florida Today. The engineering firm has done about 15,000 home inspections in Florida to get homeowners certified for insurance discounts.

An Applied Research study shows that less than one-half of 1 percent of Florida homeowners are getting all the discounts they have coming to them.

“We believe that there may be a better way to achieve what you’re after, without some of the drawbacks. We believe the burden (to agents) would be quite onerous,” Scott Johnson, a lobbyist for the Florida Association of Insurance Agents, told a House committee. “We’re concerned that approaching it this way would only restrict the offering of numerous quotes.”

Instead of requiring policy-specific information, industry lobbyists suggested more generic notices and Web pages that could inform consumers.

York conceded the bill could mean more work for his firm, but said he makes clear to customers that there are other ways to certify the improvements using engineers or architects.

Topics Florida Catastrophe Carriers Natural Disasters Legislation Hurricane