“The Florida windstorm mitigation program simply isn’t working,” NAMIC said in a letter to the Windstorm Mitigation Committee of the Florida Commission on Hurricane Loss Projection Methodology. Liz Reynolds, NAMIC's Southeast state affairs manager, presented the letter to the committee and will testify during tomorrow’s hearing in Tallahassee.
Florida is undertaking a “post-mortem” of its mitigation efforts. HB 1495, passed this year by the Legislature to allow for a Citizens “glide path” to more actuarially sound rates and a more realistic Cat Fund, also established the Windstorm Mitigation Committee. The committee has been charged with examining residential insurance hurricane mitigation discounts that are based on studies from Applied Research Associates and were implemented in two stages by the Office of Insurance Regulation.
In her letter, Reynolds emphasized that NAMIC members support risk-based incentives to encourage strengthening of homes, but she pointed out the state’s enforcement of the wind mitigation program must result in overall premium levels sufficient to pay claims. Reynolds closed her comments by asking the committee to recommend that policymakers ensure premium credits are recalibrated to reflect true mitigation efforts and tighten oversight of home inspections.
The Sept. 17 hearing follows one on Aug. 12 that lasted from 9 a.m. to past 6 p.m. An agenda for three days of commission meetings, which includes the windstorm mitigation committee agenda for Sept. 17, is available, and handouts, presentations, and other materials provided to the windstorm mitigation committee can be found at www.sbafla.com/methodology. Click on “Windstorm Mitigation Committee” on the left side of the screen.
Direct questions to NAMIC State Affairs Manager Liz Reynolds.