If you are looking into purchasing hurricane protection products for your home, one of the major factors that should influence your decision will be the homeowner’s insurance savings you will undoubtedly accumulate!
How Can You Save on Homeowner’s Insurance?
Insurance companies will give you a “Wind Storm Mitigation Discount” — money back on your home insurance policy if all of your openings (windows, doors and garage door) are protected with Florida Building Code approved products. Why? Because homes that have installed certified and approved hurricane-resistant components are less likely to be damaged during a hurricane. Insurance companies cover all or much of the cost of this damage, and it’s cheaper for them to insure a home that is less likely to be damaged by a hurricane than one that may be blown away and will need to be replaced or repaired! Just like your car insurance premium will decrease if you drive safe, or your health insurance premium will decrease if you live well, the premium on your your homeowner’s insurance will only go down if you take the necessary preventative measures!
FAQs About Homeowner’s Insurance Savings
This is NOT a one time credit. Once protected, your insurance premium will continue to be discounted and you will continue to save year after year after year.
How do I obtain a homeowner's insurance discount?
Florida Statute 627.711 establishes the official procedure for obtaining a discount, which is:
- After installing the necessary hurricane protection, contact the Office of Insurance Regulation to apply for and obtain a certifiable inspection.
- The state will provide guidance on finding a licensed building code inspector or contractor to verify that you are eligible for a discount.
- If and when your home is certified, you will get a discount on your next premium!
How big will my homeowner's insurance savings be?
Your savings will depend on a) what kind of improvements you have made and b) how much of your house is protected. Generally, more expensive products (e.g. hurricane impact windows and doors) will lead to a higher ROI in terms of insurance savings.
So what's the relative cost?
This means that more money spent now adds up to more money saved later. In other words, how much you spend now is only a fraction of what you will save. For example, hurricane insurance deductibles generally run about 2% of home’s value. Newspapers report that the average Florida home value is about $350,000. The average hazard insurance deductible will therefore run about $7,000.
At the same time, the cost of protecting an average single story home with Dade county rated aluminum panels and garage door braces ranges between $2,500 and $3,500. At $3,500, the return on investment will be 100% when your next premium is due. Remember that purchasing hurricane protection is a ONE-TIME COST, while your insurance savings continuously compound — 200%, then 300%, and on and on!