The Department of Insurance releases its benchmarks for hurricane-only premium discounts for fortified roofs. Commissioner Tim Temple says there are a total of nine tiers, and they’re based on two factors.
“They’re based on whether you are in north, central or south Louisiana, and they’re also based on whether you have a fortified roof: Silver or gold,” Temple explained.
The silver and gold designations refer to higher levels of mitigation. The discounts on hurricane coverage range from 16% for those in north Louisiana with a base-level fortified roof to 49% for those in south Louisiana with a gold-level fortified roof. Temple says insurance companies looking to deviate from those discount percentages will need to justify their reasons.
“If they want to break from that, then they have to show actuarial justification how that would negatively impact their financial solvency, their ability to pay claims,” Temple said.
Temple says he hopes these discounts will be the overriding factor in convincing people – especially those along the coast – considering a fortified roof to make the move.
“I think this will help people make the decision to go ahead and get that fortified roof, which is the long-term solution to affordable homeowner’s insurance in south Louisiana,” Temple said.
The discounts take effect January 1st. More information can be found at FortifiedBenchmarks