In a letter to the editor originally published on June 20 in the Treasure Coast Palm, I examine the issue of insurance mitigation discounts for property owners making improvements to their dwellings against storm damages in the hurricane-prone state of Florida. I discuss the importance of mitigation and how discounts can play an important role in encouraging mitigation. However, I argue the risk of fraud is a real problem the state needs to address.
“Measures to prevent fraud are necessary and any long-term mitigation strategy must take into account property characteristics and require verification of the improvements. Until and unless fraud is addressed, the common-sense idea of mitigation isn’t going to gain the ground it should.” The efforts by state officials to monitor and check the quality of these improvements are a sound step in the right direction.
The letter, “Fraud in mitigation discounts harms Florida residents and insurance buyers” can be found online at: http://www.tcpalm.com/news/2011/jun/20/letter-fraud-in-mitigation-discounts-harms-and/#comments