The Texas Department of Insurance published a bulletin requesting insurers to give premium discounts to homeowners who fortify their homes against damage from storms and wildfires.
Loss mitigation techniques result in lower frequency and severity of losses, resulting in less damages paid by insurers. Fewer losses result in premium discounts that are actuarially supported. Common mitigation techniques include impact-resistant roofing materials and proactively protecting against wildfire.
Insurers are encouraged to incorporate loss mitigation into rating plans and premium calculation and inform insureds of credits available for loss mitigation efforts. Insurers that introduce or amend loss mitigation discounts can submit their filings on SERFF.
The bulletin can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.