Fraud in Mitigation Discounts Harms Florida Residents and Insurance Buyers

by Matthew Glans on June 23, 2011

Mitigation discounts have continued to be a mixed bag for insurers in Florida. While most insurance companies and regulators agree that providing discount for mitigation improvements to hurricane susceptible homes is a good idea, in some instances homeowners are able receive discounts for repairs that are unnecessary.

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:

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