INSURANCE CREDITS/DISCOUNTS

The Inspection Depot mitigation inspection report clearly provides the communication necessary for homeowners and building owners to understand precisely what the current wind resistance as it relates to the mitigation form (OIR 1802) and what clients can do to further strengthen their homes from a wind mitigation perspective and to secure additional discounts and credits as it relates to their insurance policies.

In recent years the state of Florida legislated and mandated insurance credits and discounts in an effort to entice Florida’s property owners to mitigate their homes and buildings against windstorms and hurricanes.

Since its inception, thousands of homeowners across the state have taken advantage of these discounts and credits and hired inspectors to complete the required inspection paperwork. The Uniform Mitigation Verification Inspection Form OIR1802, is the standardized residential inspection report (inspection paperwork), accepted by the insurance industry today. These inspections were intended to be conducted to a certain quality as outlined on the inspection form, but we now know this was not the case.

With little to no training, oversight or quality control measures mandated for inspectors, the quality of inspections and data submitted to insurance carriers went uncontrolled and has been questioned now for some time. Many inspection companies developed business models guaranteeing insurance discounts and credits, which may have been non-existent! On the commercial side, some even conducted inspections for a percentage of the savings, which in many cases was thousands of dollars!

Over the last two years many issues have been identified in the inspection process, from incorrectly completed inspection reports, purchase of pre-signed blank reports, duplication of signed, blank reports, little or no quality assurance, oversight and many more.

As a result, the risk of unmitigated homes has remained potentially unchanged for insurance carriers and policyholders alike in the state of Florida. Many insurance carriers as a result are now in the process of reviewing their policies and evaluating the mitigation data for the potential of fraud or erroneous reporting that may exist. They are conducting re-inspections to determine the degree of error and all are coming to the same conclusion. The error rates on previous inspections are high! Inspectors either do not completely know what they are doing, are not qualified or are intentionally making errors for the benefit of themselves and/or policyholders!

As a consequence of these investigations, insurance carriers are looking to take more control of the inspection process so they can rely on the inspection data and ensure their policyholders are not placed at risk because of unscrupulous or inexperienced inspectors. Insurance carriers want accountability and confidence with the inspectors’ ability and qualifications.