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RESOLUTION URGING THE FLORIDA OFFICE OF INSURANCE REGULATION TO CONTINUE TO REJECT ANY REQUEST FROM PROPERTY INSURANCE COMPANIES TO ELIMINATE DISCOUNTS FOR HURRICANE SHUTTERS AND OTHER HURRICANE MITIGATION EFFORTS BY HOMEOWNERS; URGING GOVERNOR CHARLIE CRIST, FLORIDA�S CABINET AND THE FLORIDA LEGISLATURE TO CONTINUE TO KEEP MEANINGFUL DISCOUNTS IN PLACE FOR HURRICANE MITIGATION EFFORTS

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WHEREAS, on July 24, 2009, State Farm Florida Insurance Company filed a request with Florida�s Office of Insurance Regulation to eliminate and reduce various discounts in its rating plan for homeowners insurance; and
WHEREAS, in its filing, State Farm proposed to eliminate or reduce discounts for hurricane shutters and other efforts by homeowners to mitigate hurricane damage, as well as for other consumer discounts for longtime policyholders, claims-free policyholders and policyholders with multiple policies with State Farm; and
WHEREAS, by letter dated August 6, 2009, the Office of Insurance Regulation approved the elimination of consumer discounts, but refused to approve changes eliminating discounts for hurricane mitigation efforts; and
WHEREAS, the Office of Insurance Regulation indicated that removing discounts for longtime policyholders, claims-free policyholders and policyholders with multiple policies with State Farm would result in a 5 to 20 percent overall premium increase, resulting in significantly higher insurance premiums for many homeowners with State Farm policies; and
WHEREAS, it is estimated that hurricane mitigation discounts result in an average of another 13 percent reduction in homeowner insurance policyholder�s premiums; and
WHEREAS, Florida law currently requires property insurers to offer discounts for hurricane mitigation, but the law gives insurance companies leeway to reduce their mitigation discounts after doing their own mitigation studies; and
WHEREAS, it is anticipated that other insurance companies may follow State Farm�s lead in attempting to reduce or eliminate discounts for hurricane shutters and other hurricane mitigation efforts, both before the Office of Insurance Regulation and the Florida Legislature; and
WHEREAS, hurricane mitigation discounts provide a meaningful incentive to homeowners to install hurricane shutters and make other efforts to protect homes from hurricanes; and
WHEREAS, Governor Charlie Crist, Florida�s Cabinet, the Florida Legislature and the Office of Insurance Regulation should keep in place meaningful financial incentives through property insurance discounts to encourage homeowners to install hurricane shutters and take other steps related to hurricane mitigation and protecting their homes,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board:
Section 1. Urges the Florida Office of Insurance Regulation to continue to reject any request from property insurance companies to eliminate or reduce discounts for hurricane shutters and other hurricane mitigation.
Section 2. Urges Governor Charlie Crist, Florida�s Cabinet and the Florida Legislature to continue to keep in place meaningful discounts and financial incentives to encourage homeowners to install hurricane shutters and make other efforts related to hurricane mitigation and protecting their homes.
Section 3. Directs the Clerk of the Board to transmit certified copies of the resolution to the Governor and other Cabinet members, Senate President, House Speaker, Chair and Members of the Miami-Dade State Legislative Delegation, and Insurance Commissioner.
Section 4. Directs the County's state lobbyists to advocate for the issue identified in Sections 1 and 2 above, and authorizes and directs that the 2010 state legislative package be amended to include this item.