Effects of Wind Mitigation Credits on Florida Home Insurance Market

For the past years devastating hurricanes have hit Florida which caused a lot of losses to lives, and property. Subsequently, premium insurance rates have rapidly increased. Because of this, the state legislators encouraged the residents of Florida to make their houses more resistive to winds. Once a house is proven to have great resistive features through a certificate issued after a Wind Mitigation Inspection, discounts on the windstorm portion of the total premium insurance will then be given. This was made effective on March 1, 2002 when the new state-wide building code was revised. Finally, in 2003, windstorm insurance rates were made available for homeowners to take advantage.

After the hurricane hit Florida

Though this program has brought a lot of benefits to homeowners (owners of Condos, Townhouses, Single Family Home, Multi-Family Buildings, and Commercial Buildings) in Florida, the insurance industry have different reactions on it. One part of the market is optimistic in wind mitigation credits while the other strongly disagrees to it. For those who are optimistic to it, to them, wind mitigation discounts are justified because houses with stronger, more wind-resistive features have lower losses during hurricanes. After a hurricane, pro-wind mitigation credit insurers are confident that they will have fewer costs in repairing a house. On the other hand, other insurance companies criticize this kind of regulation. According to them, there are several reasons why this wind mitigation credits should be removed. First, it cost them to loose a lot of money. The implementation of these credits caused these companies to earn fewer profits and thus makes these companies weaker. Third is that, they are unsure whether all of these houses are truly wind-resistant or not. Insurers fear that if hurricanes hit Florida, these houses, though proven to be wind-resistive by a Wind Mitigation inspector might still be greatly damaged. In short, these insurers do not find these credits being justified.

a wind resistive house (wind resistive windows)

Today, the wind mitigation credits on premium insurance continue to give benefit to the residents of Florida. But in reality, insurers are also on the verge of surviving from these discounts. In fact, nine insurers (in four different insurer groups) that write residential property insurance in Florida experienced rating downgrades by A.M. Best in 2009. This was due to a significant deterioration in earning and risk-adjusted capitalization from a sharp decline in premiums due, in part, to the implementation of windstorm mitigation discounts (Business Wire 2009). Also, according to a speaker in a formal meeting in Florida, fifty-eight to seventy-eight percent of all mitigation reports provided to insurers have errors of some nature. These errors are due to fraud, inspector inexperience, or data entry. In order to clarify all of these, the government suggested that insurance company should review the wind mitigation discounts given to homeowners to ensure that all of these homes have construction features that are truly strong and wind resistant. Likewise, insures are now conducting re-inspections that are concrete and unbiased.  Policyholders are also requested by the government to report immediately if they have complaints against insurance companies. 

Dania Beach, Florida (General Information)

Dania Beach is an incorporated city in Broward County, Florida, United States. It is located between Ft. Lauderdale and Hollywood and is a part of the South Florida metropolitan area. In 2004, the city celebrated its Centennial Birthday. 

Location Map of Dania Beach

Area

Dania Beach has a total area of 6.31 sq mi (16.3 km²), with a land area of 6.09 sq mi (15.8 km²) and a water area of .22 sq mi (0.6 km²) 3.49%. The city’s zip code is 33004. 

Demography

Population by age

This small size beautiful city has a population of 28,831 as of July 2006 (U.S. Census Bureau). Dania Beach, formerly known as Dania, experienced a great increased in population during 1990-2000 with a population change rate of 53.9%. In 1990, the number of persons in the city was 17 736 but in 2000, it turned out to be 27 293. It has a density of 1781.2 persons / mi². In 2000, whites comprised 61.6 %, African Americans 23.74% ,0.30% Native American, 1.39% Asian, 0.03% Pacific Islander, and Hispanic were 12.01% of the population. Additionally, the city’s average household size was 2.19 and the average family size was 2.85.The median age for residents in Dania Beach, Florida is 40 (this is older than average age in the U.S.)

Economy 

          Dania’s economy flourished with the services sector as it major contributor. Finance, insurance, real estate and retail trade comprised the service sector. A key that has made this sector improved is Dania’s tourism. In 2000, the per capita income for the city was $20,795 while the median income for a household in the city was $34,125, and the median income for a family was $37,405. Males had a median income of $35,081 versus $26,535 for females. Many airlines are also headquartered in Dania namely Gulf stream International Airlines and Carnival Air Lines

Climate

Dania’s climate is claimed to be one of its best asset. Its subtropical climate attracts many tourists who seek sunshine and warm, especially during the winter season. The city average temperature in January is 67.5 F and 82.6 F in July. It also has an annual precipitation of 64.19 inches. Although the Dania is closer to the tropics, it has fewer very hot days each summer than does the northern part of Florida.

Tourism

A relaxing beach in Dania

Dania Beach, Florida is known for its beautiful beach resorts. Most of its resorts are pristine yet inexpensive. It is also becoming South Florida’s location for maritime industries. Aside from its beach resorts, Dania is also the home of the International Game Fishing Association Hall of Fame and Museum, Bass Pro Shops Outdoor, Dania Jai Alai, World Famous Jaxson’s Ice cream, the amusement called Boomers! and the many Antique shops and malls. For nature lovers, the Westside Park and Anne Kolb Nature Center is a great place to go. Located at the southern part of Broward County, these parks let tourists explore the natural diversity of the few mangrove ecosystems in Southeast Florida. The city also has parks that offer recreational fun, which includes tennis, basketball courts, an Olympic size swimming pool, wide-open green spaces, and more.

Florida Wind Mitigation Inspection

When hurricanes, bringing heavy rains and tremendous winds, strike your home in Florida, It can cause heavy damage. It can destroy the roof, walls, appliances, windows, doors, and the garage in your home.  A Wind Mitigation Inspection is very important to ensure the safety of your family in your home during hurricanes. It is also a great way for residents in Florida to be informed about the conditions of their homes and its capability to endure hurricanes. A Wind Mitigation Inspection is also a great investment for the protection of your family, property, and home. With that, homeowners will have peace of mind even during natural catastrophes.

House for Wind Mitigation

On the other hand, having a house in Florida requires you to acquire a Windstorm Insurance. Unfortunately, because of the damaging hurricanes that have hit Florida over the past years, getting this insurance takes a lot of expenses. But there’s a way to save money and reduce your insurance expenses - that is, in having a Wind Mitigation Inspection. Discount in Windstorm Insurance fees came into effect on March 1, 2002 when Florida state legislators revised the new statewide building code. Finally, in 2003 new windstorm insurance rates were made and are now available for homeowners to benefit. This discount can only be given to homeowners with houses that have better wind resistant which can be proven by having a Wind Mitigation Inspection certificate.

Wind Mitigation Typical Construction

A Wind Mitigation Inspection is conducted by a certified inspector that will look into the features of your home and will analyze whether it is strong enough or less affected when hurricanes strike. This Wind Mitigation Inspector includes all the requirements of Home Safety and Hurricane resistance which are governed by the rules of Florida guidelines.  The inspection covers all the features in your home like the roof shape, concrete block construction, water resistance equipment, windows, doors, roof decks, and hurricane clips. The Inspectors will then tell if your house is equipped enough to resist hurricanes and will then give you a certification. But if your house did not meet the standards, you have to renovate it so that you will pass for the next inspection.  

A Wind Mitigation Inspection is not as costly as you think. In fact the fees are very reasonable. It’s really frugal to acquire this service because for only $150, you can get save as much as $1000 in your premium insurance fee. Also, the inspection will be quick and accurate for it takes only 20-30 minutes.

Surely, Florida Wind Mitigation Inspection is a need for every household to have this financial and  lifesaving for a reasonable price in your own home and time.

Watch this video to learn more about Wind Mitigation Inspection.

History of the city of Dania, Florida

Once known as the “Tomato Capital of the World”, Dania is a city in Broward County in the Miami-Fort Lauderdale metro area in Florida, USA. Dania is also the home of one of the largest Jai Alai frontons in the United States. IGFA Fishing Hall of Fame and Museum and Boomers amusement are both located in Dania.

Dania’s history began when W.C. Valentine planned to develop a settlement called Modello. Subsequently, 12 Danish families from Chicago settled in this area around 1890s. After three years, 30 Danes coming from Oconto, Wisconsin also transferred in this area. The first home was then built by A.C. Frost who also established the first general store in 1902. He was also the leading post office official and the one who initiated for the formation of the settlement’s first two schools. And in 1903, Dania Methodist Church, the town’s first place of worship, was built.

Later on Modello was established as the first city in the Broward County in 1904. Since most of its 35 residents were Danish, the city’s name was change into Dania. After almost a decade, Dania became a prosperous community with a population of more or less 12000 people. The population have further increased during the 1920s. Through the years, Dania City met a lot of problems. Like in 1925, a fire has destroyed Dania Hotel. On the same year, the Bank of Dania got bankrupt due to the anomalies in the Bank’s home office in Atlanta. Natural disasters also have struck Dania. One of them was the ’26 hurricane which caused a lot of damage to the town, including its important buildings - the Dania Methodist Church. Due to the city’s huge damages, the people initiated to vote for an annexation to the city of Hollywood. But then in 1927, the two cities were deannexed.

The city prospered quickly through its Tomato Farming Industry. In 1910, the Florida East Coast Railway was transporting tomatoes in the northern states of the United States. And by that, Dania was then hailed as the “Tomato Capital of the World”. In 1927, the first “Tomato Day Celebration” was held. Over 5000 persons attended the said celebration and continued into the 1940s involving a Miss Tomato Festival Pageant, and a messy but fun tomato fight. Unfortunately, during the post world war, the tomato farming industry ended when the crops began to fail. 

Another window opened in Dania City when the antique business started to flourish. The Antique Business Industry began when Genevieve and Williard Ely put up a shop in 1945. After many years, Dania once again made a name in history, known as the Antique Capital of the South. And if you go to Dania, you will see over 100 antique shops selling the most elegant and valuable antiques in the world.

Dania Beach

In 1999, Dania formally changed its name to Dania Beach, though Dania City is still widely-used by people. And in 2001, the city included several areas of Broward County. Today, the city has a population around 28 831.

For more info about Dania Beach, Florida, check the video (History of Dania Beach, Florida) below.