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MITIGATE BEFORE IT’S TOO LATE
January 23, 2013Robin Smith Westcott, Esq.
Florida Insurance Consumer Advocate Tallahassee, Florida
Senate Banking and Insurance Committee
CENTRALIZE – CONSOLIDATE - MITIGATE
ADVISORY COUNCIL PUBLIC MODEL
DATABASE OF MITIGATION LEVERAGE OF FEDERAL FLOOD PROGRAM RESTRUCTURE MITIGATION CREDITS COMMERCIAL PROPERTIES
MITIGATION PROGRAMS & GRANTS OUTREACH & EDUCATION
Move Responsibility for thePublic Model
OIR DEMPublic Model
Office of Insurance Regulation
Division of Emergency
Management
Centralize Data
• Hurricane Risk• Sinkhole Risk• Mitigation Features• Insurable Values• Rating Information
-
0.50
1.00
1.50
2.00
2.50
0.75
2.12
Residential Insured Property ValuesState of Florida
$ Trillions
Source: 2012 FHCF Annual Ratemaking Formula Report
Market Value Does not EqualReplacement Cost
Broward CountyBuilt 1978 Square Foot 1475
2001 Purchase Price $163,0002003 Purchase Price $216,0002008 Purchase Price $185,0002012 Market Value $163,840
Insurance Coverage A Limit $224,600 - Premium $2,420
Yes No Total/AvgNumber of Homes 76,225 228,423 304,648 Average Insured Value 628,806 363,193 429,651 Average Square Feet 2,279 1,733 1,870 Average Age 37 42 41 Average Premium 2,570 1,993 2,138
Note:
HW2, DW2, DP1, DP3, & HO3 policies as of 12/31/10.
Coastal AccountRisk Profile
Hurricane Impact Opening
Protection
Mitigation in the Coastal Account is
Better Bang for Buck
For every $1.00 spent on reinsurance and Cat bonds the expected recovery is .16 cents.
For every $1.00 spent on mitigation the expected loss savings is $2.00.