The Alabama Insurance Underwriting Association, or the Beach Pool, is implementing new discounts to help coastal policyholders reduce their windstorm premiums.
The Beach Pool discounts will apply to homes built to the Fortified…for safer living construction standard of the Institute for Business & Home Safety (IBHS).
The Fortified program is designed to lessen damage from the hazards a home will face. In coastal Alabama, that would include hurricanes and flooding. The program pays special attention to the most vulnerable areas of a home, including window and door protection, connections tying the house together, roof construction and building elevation. Construction and materials must meet program standards, but specific products or brands are not required.
Owners of homes that meet the Fortified standard could see much lower premiums. Discounts range from 17 percent to 56 percent, depending on type of construction and whether the home is located in the eligible Gulf Front, Beach, or Seacoast territories of Baldwin and Mobile Counties.
According to Carl Schneider, an insurance agent in Mobile and board member with Alabama Independent Insurance Agents Association, a homeowner spends a little more up front for Fortified…for safer living construction, but recovers that cost over the years through premium credits. “The Beach Pool can charge less for coverage since the building is less likely to suffer damage in a storm. This is a long-term solution for coastal areas,” he said.
Discounts will also be available for existing homes that are strengthened through retrofit measures, which must be inspected and certified by a licensed professional engineer.
IBHS President and CEO Julie Rochman noted that a stronger building stock improves availability and affordability of insurance and – should disaster strike – reduces the drain on recovery dollars from local, state and federal sources. “Everyone benefits when homes better resist the threats they face,” she said.
Topics Alabama Construction
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