What is Meant by Mitigation or Resiliency Efforts?
Insurance companies determine insurance rates on a prospective basis. This means that the insurance company examines their total losses (what they paid in claims) and determines whether they will likely pay more or less than that amount in the next year.
When there is a natural disaster or an extreme weather event, insurance companies may pay out significant amounts of money for claims.
Over the last several years, extreme weather disasters exceeded the $100-billion mark. As losses from natural disasters and extreme weather rise, insurers must collect enough premium from their insureds so that they have enough funds to pay those claims.
One step that consumers can take pre-disaster to help lessen the potential impact of a catastrophe is to make their home more "resilient" to extreme weather. You may also sometimes hear this referred to as "mitigation" or "fortified".
A more resilient home can mean fewer losses, which helps ensure a healthy and financially solvent insurance market.
How Can I Protect My Home and Reduce My Insurance?
Many losses are preventable. Consumers should ensure their homes are properly maintained to help mitigate their risk.
The following ideas are not comprehensive but are an idea of what types of changes homeowners can make to help make their home more resilient to extreme weather and therefore reduce their potential for losses. While some of these changes are more expensive than others, many insurance companies will provide you with a discount on your insurance policy when the upgrades are complete because you have taken steps to better protect your home. You need to ask your insurance company what kind of discount they offer for these mitigation efforts.
Keep in mind that your standard homeowner's insurance policy does not cover losses from flooding. Losses stemming from wind damage is usually covered but your policy may require you to pay a separate wind deductible.
Wind/Hurricane
- Add hurricane straps and/or tie-downs to the home.
- Install a new roof if needed to ensure it can withstand severe winds, as well as be more resistant to hail.
- Install storm shutters to protect window glass and glass doors from flying debris.
- Refit windows with hurricane-resistant glass.
- Install gable end, garage door, patio and double door bracing.
Wildfire/Fire Damage
- Install flame-retardant shingles and siding.
- Cover open roof vents with screens to help keep embers from entering the home.
- Keep shrubs and trees off the side of the home. Regularly clear dead brush from the yard. Instead of landscaping, consider "hardscaping". You want to reduce the number of items that can catch fire and carry flames to your home.
Flooding
- Elevate housing and flood-prone utilities, heating/cooling systems and appliances above the base flood elevation when possible.
- Make sure sump pumps are charged, working, and have a backup power supply available.
- Point downspouts away from the home and keep them clear of debris
- | Understanding Flood Risk Mitigation (floodsmart.gov)
The National Association of Insurance Commissioner's Climate and Resiliency Task Force’s Mitigation Workstream is focused on identifying risk and working on strategies to reduce it. A list of mitigation measures was also developed to describe actions policyholders can take to reduce their risk exposure for individual properties.