Fla. Approves ISO Wind-Loss Credit Program
By Daniel Hays
NU Online News Service, Feb. 24, 3:37 p.m. EST?The Insurance Services Office, Inc. said its scheme for carriers to give Florida homeowners premium discounts for wind protection features–based on structural items and local building code enforcement–has been approved by regulators.
ISO, based in Jersey City, N.J. said the program for its member companies was accepted by the Florida Office of Insurance Regulation.
Officials at ISO said that the discounts applied only to the windstorm damage portion of policies. In some coastal locations, they said, the windstorm protection could account for more than 50 percent of the premium cost.
According to ISO, if all the portions of the program were applied to a home to give it the maximum discount, the overall discount could theoretically amount to 54 percent. But ISO said it was probably impossible for any home to qualify for that large a discount.
To develop its discounts, ISO does a one-to-10 rating of how well building codes are enforced in local communities, called the Building Code Effectiveness Grading Schedule (BCEGS).
Homes in towns that have a top–number one–rating qualify for a 13 percent discount. Dave Dasgupta, a spokesperson for ISO, said only one community, Coral Gables rates a one.
In addition to a discount for a good BCEGS rating, ISO filed a schedule of other credits that insurers may apply for wind-loss mitigation for dwelling and commercial properties.
New homes in a community with a one-to-three BCEG rating qualify for a 15 percent credit, as do homes where the owner has a design professional certify that the home meets proper windstorm design criteria.
In addition to the 15 percent select or new home credit, a homeowner can get a three-to-26 percent credit for structural features on the house. The six features that result in credit are for roof geometry, roof-to-deck attachment, roof-to-wall connection, shutters, doors and roof coverings that are wind resistant.
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