Brief history of My Safe Florida Home Certification of Inspectors Inspection Process How Homeowners Access Discounts RMS Analysis

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2 Brief history of My Safe Florida Home Certification of Inspectors Inspection Process How Homeowners Access Discounts RMS Analysis

3 Florida Legislature created My Safe Florida Home to: Help Floridians better protect their property Help Floridians save money on insurance premiums Goals Set by the Legislature with $250 million: Provide free home inspections to 400,000 Floridians Provide matching grants up to $5,000 to 35,000 Floridians

4 CERTIFICATION OF INSPECTORS Florida law directed the MSFH program to contract with wind certification entities that employ inspectors who: Were certified building inspectors, licensed general or residential contractors, professional engineers, licensed professional architects or Had at least two years experience in residential construction or residential building inspections; Underwent a Level Two background check, to include fingerprinting and drug testing; and Received specialized training in hurricane mitigation procedures and passed an exam with a score of 90 percent or better.

5 What s Involved in an MSFH Inspection Inspection focuses on two key areas: Openings: Windows, Exterior Doors and Garage Doors Roof: Covering, Roof Deck Attachment, Roof-to-Wall Connections, Gable Ends and Secondary Water Barrier On average, an inspection takes 47 minutes.

6 Inspection Report Gives Homeowners: Improvement Plans Cost estimates to make improvements Projected insurance savings Home Structure Rating Scale

7 A GLANCE AT THE INSPECTION REPORT *Estimated annual premium savings are based on current insurance company s windstorm loss reduction credits and current base wind premium per year, Possible discounts are estimates and do not factor in future rate changes. **A breakdown of estimated cost for each improvement plan is provided in Section 2 of this report.

8 Mitigation Discounts Data from MSFH inspection can be used to complete form used by insurers to provide mitigation discounts. Emergency rule approved by Cabinet on July 1, 2007 to allow MSFH program to populate this form on behalf of homeowners. Effective Nov. 1, 2007, Insurance Commissioner issues order allowing MSFH inspectors to complete and sign forms for homeowners. MSFH program required WCEs to complete MSFH inspection AND form for set fee. Training on completing form incorporated into MSFH program.

9 Snapshot: 401,372 Inspections 10% 28% 21% Of inspections completed, 55% of homeowners were eligible for average savings of $220 on wind premium. Available discounts based on insurer filings with the Office of Insurance Regulation in 2006, prior to mandatory increases in mitigation discounts. 28%

10 HOME STRUCTURE RATING SCALE (HSRS) The HSRS produces a score between 0 and 100 based on structure plus location, with 0 as the score for a very weak structure and 100 as the score for a code plus structure. In all wind zones, the score for a home constructed under statewide building code standards (March 1, 2002) lies within a scoring range of 40 to 90. Homes built before the 2001 Florida Building Code, depending on location, typically generated a score below 40 unless multiple codeplus improvements were in place.

11 Analysis of the MSFH Program Results RMS estimates that each dollar that has been spent, when combined with matching dollars from homeowners, can reduce the total industry liability by $1.46 each year. RMS estimates the total annual reduction in the 100 year loss is $136 million which is larger than the $93 million invested in grants. RMS estimates that investment in the MSFH grant program would have reduced the FHCF premium by $2.7 million a year.

12 Alex Sink, Chief Financial Officer Florida Department of Financial Services