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Underwriting Corner | Wind Mitigation Discounts


Underwriting Corner | Wind Mitigation Discounts

The Atlantic Hurricane Season is winding down and we have been fortunate enough to have a quiet year.  With next year’s season around the corner, we would like to take the opportunity to remind you about the discounts available to policyholders who take the extra steps, through mitigation efforts, to reduce the risk of loss due to wind events.  We hope the following descriptions and definitions will assist agents in determining when an insured is eligible for one or more of these discounts and the documentation necessary to support the application of the discount.  Please remember, all documentation is required as a trailing document within 15 days of binding coverage.  If the necessary documentation is not received or, upon review, the insured does not qualify for the credit, the policy will be corrected and the premium adjusted.  Credit can also be added mid-term with the proper documentation.

Wind Mitigation Discounts (each credit is a 15% discount to the wind portion of the premium)

Louisiana Building Code Credit – Requires a wind mitigation affidavit completed by a qualified professional for ALL risks, regardless of year of construction, and confirms the following:

  1. The home was built to all 2006 SUCC requirements.
  2. Secondary Water Resistance on all roof areas.
  3. Roof-deck attachment with 8d nails spaced every 12” in the field and 6” along the edge.
  4. Roof-wall connected with double wraps on all trusses.
  5. Floor-to-foundation connections designed and installed in accordance with SUCC.

South Carolina Building Code Credit – For risks with a year of construction 2006 or newer, this credit can be applied automatically.  Any risk built prior to 2006 requires a wind mitigation affidavit completed by a qualified professional to confirm the dwelling is built to the South Carolina or International Building Code requirements.

Hip Roof Credit – Credit is available for risks that have a 100% hip shaped roof.  Hip refers to a pyramid shaped roof where all sides slope down to meet the walls.  A small decorative gable that is not part of the main roof line may not fully exclude the risk from this credit.  However, skylights or overhangs that exceed 18 inches reduce the benefit of this roof shape and the risk is not eligible for the credit.

Complete Window and Opening Protection Credit – Requires a wind mitigation affidavit completed by a qualified professional to confirm all exterior openings, including doors, windows, skylights and vents are protected with shutters or other materials or doors.

 Please note, not all discounts are available in all programs or states.  Please refer to the Underwriting Manual of the program you are working with for additional information.  The information provided here is only applicable to Lighthouse Property Insurance Corporation and should not be construed as underwriting guidelines for general knowledge.

Written by: Jennifer Vazquez