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RESOLUTION URGING THE FLORIDA LEGISLATURE TO PASS LEGISLATION AND THE FLORIDA INSURANCE COMMISSIONER TO PROMULGATE RULES ENSURING THAT HOMEOWNERS WHO HAVE MADE THEIR HOMES MORE RESISTANT TO HURRICANES RECEIVE DISCOUNTS FROM PROPERTY INSURANCE COMPANIES, AND CLOSING LOOPHOLES IN CURRENT LAW THAT ALLOW PROPERTY INSURANCE COMPANIES TO REDUCE OR ELIMINATE DISCOUNTS FOR HURRICANE MITIGATION IMPROVEMENTS

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WHEREAS, residential hurricane mitigation improvements consist of efforts to reduce the severity of loss, and include hurricane shutters, impact glass, hurricane straps, longer roofing nails and roof shape, among other things; and
WHEREAS, the potential economic benefits of making hurricane mitigation improvements to homes in Florida are well documented and beyond dispute; and
WHEREAS, making residential hurricane mitigation improvements is more than just an economic issue, as stronger homes result in fewer deaths and injuries in the event of a hurricane; and
WHEREAS, following Hurricane Andrew, the Florida Legislature passed legislation in 1993 requiring insurers to offer shutter discounts or deductible reductions as an incentive for homeowners to install hurricane shutters and make other improvements to reduce hurricane losses; and
WHEREAS, in 2000, the Legislature expanded the sophistication of mitigation rating factors, added discounts for both fixtures and construction techniques for insurers to include in
their rate filings and adopted a rate filing requirement where enhanced discounts were to be incorporated in insurer filings no later than February 28, 2003; and
WHEREAS, in late 2006, the Financial Services Commission adopted revisions to rule governing hurricane mitigation discounts that required the full implementation of hurricane mitigation discounts no later than March 1, 2007, but certain loopholes were written into the rules that allowed insurers to use alternate mitigation discounts; and
WHEREAS, in the last several years, property insurance companies have reduced the discounts they provide to homeowners who install shutters and other hurricane mitigation improvements; and
WHEREAS, property insurance companies also have started reinspecting homes where insurers previously had provided discounts for hurricane mitigation improvements; and
WHEREAS, these reinspections have resulted in property insurance companies removing discounts for shutters and other hurricane mitigation improvements that previously had been provided for some homeowners; and
WHEREAS, in some cases, reinspections have revealed cases of fraud and faulty initial inspections where homes did not have the level of hurricane protection commensurate with the discounts homeowners had received; and
WHEREAS, nonetheless, property insurance companies have removed or reduced discounts despite the fact that it is well established that a wind-mitigated home is far less likely to experience damage that a non-wind-mitigated home; and
WHEREAS, hurricane mitigation discounts remain an important tool to encourage homeowners to install shutters and other hurricane mitigation improvements; and
WHEREAS, it is in the best interest of all Floridians to provide homeowners with incentives to install shutters and other hurricane mitigation improvements, especially given the large numbers of Floridians are insured by Citizens Property Insurance Corporation, a property insurance company created and backed by the state; and
WHEREAS, the Florida Legislature and the Florida Insurance Commissioner should ensure that homeowners who have made their homes more resistant to hurricanes by installing shutters and other hurricane mitigation improvements receive discounts from property insurance companies; and
WHEREAS, loopholes that exist in current law that allow property insurance companies to reduce or eliminate discounts for hurricane mitigation need to be closed, while at the same time ensuring that property insurance companies have continuing incentives to do business in Florida and insure Florida 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 Legislature to pass legislation and the Florida Insurance Commissioner to promulgate rules that:
a. Ensure that homeowners who have made their homes more resistant to hurricanes by installing shutters and other hurricane mitigation improvements receive appropriately-valued discounts from property insurance companies for such improvements;
b. Close loopholes in current law that allow property insurance companies to reduce or eliminate discounts for hurricane mitigation improvements, while at the same time ensuring that property insurance companies have continuing incentives to do business in Florida and insure Florida homes.
Section 2. Directs the Clerk of the Board to transmit a certified copy of this resolution to the Governor, Senate President, House Speaker, the Chair and Members of the Miami-Dade County State Legislative Delegation and the Florida Insurance Commissioner.
Section 3. Directs the County's state lobbyists to advocate for the passage of the legislation and/or the implementation of the regulations set forth in Section 1 above, and directs the Office of Intergovernmental Affairs to include this item in the 2011 State Legislative Package.