Creation of My Safe Florida Home Program

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• Creation of My Safe Florida Home Program
• 2004 and 2005 hurricanes inflicted 38 billion in
  insured losses on 2.8 million Florida homeowners.
  
• There are approximately 4.4 million
  single-family, site-built homes in Florida
  representing 1.65 trillion or 77 of our states
  insurance exposure.
• In a 2005 study, the National Institute for
  Building Sciences concluded that for every dollar
  invested in mitigation, there is a savings of 4.
  

Florida Catastrophic Storm Risk Management Center
Symposium June 19, 2008
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• Florida Legislature created My Safe Florida Home
  to
• Help Floridians better protect their property
• Help Floridians save money on insurance premiums
• Goals Set by the Legislature with 250 million
• Provide free home inspections to 400,000
  Floridians
• Provide matching grants up to 5,000
• to 35,000 Floridians

Florida Catastrophic Storm Risk Management Center
Symposium June 19, 2008
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• Whats Involved in an MSFH Inspection
• Single-family, site-built homes eligible
• Inspection focuses on two key areas
• Openings Windows, Doors and Garage Doors
• Roof Covering, Attachment, Connections, Gable
  Ends and Secondary Water Barrier
• On average, an inspection takes 47 minutes.
• Average age of homes inspected is 26 years old.
• Average insured value of homes inspected is
  238,000.

MSFH Hardening Homes, Reducing Insurance Costs
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• Inspection Report Gives Homeowners
• Improvement Plans
• Cost estimates to make improvements
• Projected insurance savings
• Hurricane-resistance rating scale

Florida Catastrophic Storm Risk Management Center
Symposium June 19, 2008
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• Snapshot
• 350,699 Inspection Applicants
• 33 from South Florida
• 28 from the West Coast
• 19 from the East Coast
• 12 from Interior Counties
• 8 from the Panhandle

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Symposium June 19, 2008
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Plan A Estimated Costs 3,748 Average Discounts
24 Rating Scale Moved 44 to 55
INSPECTION RESULTS On average, homes inspected
scored a 44 on a scale of 0 to 100 for their
ability to withstand damage from hurricane
winds.
Plan B Estimated Costs 6,251 Average Discounts
27 Rating Scale Moved 44 to 62

• Plan C
• Estimated Costs 9,493
• Average Discounts 30
• Rating Scale Moved 44 to 72
• (Wind portion of premium)

Florida Catastrophic Storm Risk Management Center
Symposium June 19, 2008
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INSPECTION RESULTS Of 274,594 inspections
completed to date, more than 164,572 homeowners
(60) were eligible for 220 in insurance
savings on average without hammering the first
nail.
Florida Catastrophic Storm Risk Management Center
Symposium June 19, 2008
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Who is eligible for a grant of up to 5,000 and
how do they sign up?

• Single-family, site-built home that has been
  inspected
• Insured value of 300,000 or less
• Homestead exemption
• Located in wind-borne debris region
• Permit application to build home issued before
  3/1/2002
• Nearly 30 of applicants insured with Citizens
  Property.
• Average age of homes retrofitted is 29 years old.
• The average insured value of homes is 217,000.

Florida Catastrophic Storm Risk Management Center
Symposium June 19, 2008
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• Snapshot 38,889 Grants Approved
• 29,622 grants through Department of Financial
  Services
• 6,309 grants through Volunteer Florida Foundation
• 20 million partnership with 20 non-profits
• 2,958 grants through 17 local governments
• 12.8 million partnership
• Nearly 6 million in additional funds leveraged

Florida Catastrophic Storm Risk Management Center
Symposium June 19, 2008
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Snapshot of Grant Applicants
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• 51 from South Florida
• 25 from the West Coast
• 16 from the East Coast
• 7 from the Panhandle
• Less than 1 from Interior Counties

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Symposium June 19, 2008
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• 12,062 homes completed to date
• 185 homes a week
• 92 of homeowners choose to protect openings.
• 15 are protecting all openings (windows, doors
  and garage doors)
• 40 are protecting window AND door openings
• 19 are protecting window openings
• 14 are protecting the garage door
• 4 are protecting door openings (includes sliding
  glass doors)
• Average grant reimbursement to date Approx.
  3,300

Florida Catastrophic Storm Risk Management Center
Symposium June 19, 2008
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• Of homes awarded grant funds to
• protect all openings,
• the average increase in strength to the home
• as measured by the
• hurricane-resistance rating scale
• is 36 (or 16 points).

 
Florida Catastrophic Storm Risk Management Center
Symposium June 19, 2008
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THE GOOD NEWS

• Leading insurance risk modeler estimates
  predicted losses are reduced by 26 based on MSFH
  data.
• Same modeler estimates that with full mitigation
  of homes inspected by MSFH, predicted losses
  could be reduced by up to 80.

Florida Catastrophic Storm Risk Management Center
Symposium June 19, 2008
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• WHERE DO WE GO FROM HERE?
• Continued data collection on housing stock
  through centralized database
• Application of Home Structure Rating Scale
• Certification and training of inspectors
  post-MSFH
• Research on how well homes retrofitted by MSFH
  withstand future events
• Disconnect between building code and products
  eligible for mitigation credits

Florida Catastrophic Storm Risk Management Center
Symposium June 19, 2008