Bulletin 2007-16 Notice Forms-Mitigation Discounts and Credits

TO: South Carolina Department of Insurance 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 Mailing Address: 1'.0. Box 100105, Columbia, S.C. 29202-3105 BULLETIN 2007-16 MARK SANFORD Governor SCOTT RICHARDSON Director FROM: SUBJECT: Notice Fonns-Mitigation Discounts and Credits DATE: September 27, 2007 Section 38-75-755 of the Omnibus Coastal Property Insurance Act of 2007 requires insurers to provide notice of available premium discounts for residential and commercial prope1iy insurance coverage. This section applies to policies issued or renewed after December 31, 2007. Specifically, § 38-75-755 provides: (A) All insurers, at the issuance of a new policy and at each renewal, clearly shall notify the applicant or policyholder of a personal lines residential property insurance policy of the availability and the range of each premium discount, credit, other rate differential, or reduction in deductibles for properties on which fixtures or construction techniques demonstrated to reduce the amount of loss in a windstorm have been installed or implemented. The notice must describe generally what measures the policyholders may take to reduce their windstorm premium. (B) All insurers, at the issuance of a new policy and at each renewal of a commercial property insurance policy, shall include a notice that advises the policyholder that a reduction in premium may be available if the policyholder has taken steps to prevent or reduce damage from windstorm and that the policyholder may contact its agent, broker, or insurer for additional information. To expedite the review process, the South Carolina Department of Insurance has developed a generic fonn that may be used by insurers to provide this notice. Attached as Exhibits I through 4 are samples of the notice forms. These forms should be submitted with the rate filing 60 days in advance ofthe anticipated effective date. Please direct any questions that you may have regarding this bulletin or Bulletin 2007-15 to the attention of Carla Griffin, Manager, Office ofProduct Regulation at cgriffin@doi.sc.gov or (803) 737-6230. IMPORTANT NOTICE OF PREMIUM DISCOUNTS Site-Built Residential Property Insurance Coverage Section 38-75-755 requires insurance companies to notify you of the availability and range of each premium discount, credit, other rate differential or reduction in deductibles for properties on which fixtures or construction techniques demonstrated to reduce the amount of loss in a windstorm have been installed or implemented. Securing your roof so it doesn't blow off and protecting your windows from flying debris are the two most cost effective measures you can take to safeguard your home and reduce your premium. Estimated Premium Description of Mitigation Measure Discount Percent or Other Credit or Rate Differential Range South Carolina Building Code Com1;1liance • Homes built in compliance with the current edition of the International Residential Code as adopted by the South Carolina Building Codes Council. Roof covering {shingles, tiles, etc.) • Covering attached in compliance with the current edition of the International Residential Code as adopted by the South Carolina Building Codes Council or the manufacturer's installation requirements for the wind speed for the site on which the home is located. Roof Attachment • Sheathing attached in compliance with the current edition of the International Residential Code as adopted by the South Carolina Building Codes Council or an engineered design for the wind speed for the site on which the home is located. Roof-to-Wall Connection • Toe nails, clips, single straps and double straps installed in compliance with the current edition of the International Residential Code as adopted by the South Carolina Building Codes Council or an engineered design for the wind speed for the site on which the home is located. Roof Sha1;1e and Pitch • High Slope (greater than 4:12) • [ ] Hip [ ] Gable [ ] Gambrel • Other • Low Slope (less than 4:12) • [ ] Hip [ ] Gable [ ] Gambrel [ ] Shed [ ] Flat • Other Seconda!Y Water Resistance • Roofing felt or other approved layer of protection between the shingles and the roof sheathing below. • No secondary water resistance . 01;1ening Protection • None • Storm shutters on all windows meeting the minimum requirements of the International Residential Code. • Impact resistant glass meeting the minimum requirements of the International Residential Code. • Garage doors 0 Type For Com1;1anies Offering Flood Insurance On a Direct Basis • Home Located in Flood Zone [ ] Yes [ ] No • Flood Zone Designation [ ] NIA • First Floor ft I inches [ ] Above [ ] Below BFE • Flood Insurance [ ] Yes I J 1 No Estimated Premium Description of Mitigation Measure Discount Percent or Other Credit or Rate Differential Range • Elevation • Distance From Water Other Wind and Hail Deductible Options(if offered as a separate deductible) Deductible Options HOMEOWNERS CONDOMINIUMS DWELLING FIRE RENTERS $ $ $ $_ $ $ $ 1% 2% 5% Other I Estimated Total Maximum Discount I I I .. The esttmate ts general m nature and based on mformatton currently on ftle. The actual amount may vary dependmg on the spectftc ctrcumstances of the msured or applicant. Your deductible represents your share of the damages in the event of a covered loss. The higher your deductible, the more money you save on your premiums- but the greater your out-of-pocket cost will be in the event of a covered claim. The deductible(s) available to you depends on your policy type, property location and amount of insurance. Some combinations are not available. See your policy Declarations for your current deductible(s) or contact your insurance agent or the company for more information. All Other Perils Deductible Options Deductible Options HOMEOWNERS CONDOMINIUMS DWELLING FIRE RENTERS $ X X $ X X X $ X X X $ X X X $ X $ X 1% X 2% X Other Please do not hesitate to contact your agent if you have questions about the mitigation techniques included in this form or other mitigation techniques that could result in a discount. IMPORTANT NOTICE OF PREMIUM DISCOUNTS Commercial Property Insurance Coverage Section 38-75-755 requires insurance companies to notify you of the availability and range of each premium discount, credit, other rate differential or reduction in deductibles for properties on which fixtures or construction techniques demonstrated to reduce the amount of loss in a windstorm have been installed or implemented. Listed below is general information about available discounts. Please contact your agent for more specific information. Estimated Premium Description of Mitigation Measure Discount Percent or Other Credit or Rate Differential Range South Carolina Building Code ComQiiance • Structures built in compliance with the current edition of the International Building Code as adopted by the South Carolina Building Codes Council. Roof covering (shingles, tiles, ballast, etc.) • Covering attached in compliance with the current edition of the International Building Code as adopted by the South Carolina Building Codes Council or the manufacturer's installation requirements for the wind speed for the site on which the building is located. Roof Attachment • Sheathing attached in compliance with the current edition of the International Building Code as adopted by the South Carolina Building Codes Council or an engineered design for the wind speed for the site on which the building is located. Roof-to-Wall Connection • Toe nails, bolts, clips, single straps, double straps, welds or other connection installed in compliance with the current edition of the International Building Code as adopted by the South Carolina Building Codes Council or an engineered design for the wind speed for the site on which the building is located. Roof ShaQe and Pitch • High Slope (greater than 4:12) • [ ] Hip [ ] Gable [ ] Gambrel • Other • Low Slope (less than 4:12) • [ ] Hip [ ] Gable [ ] Gambrel [ ] Shed [ ] Flat • Other Seconda!Y Water Resistance • Roofing felt or other approved layer of protection between the shingles and the roof sheathing below. • No secondary water resistance . Construction T~12e {frame} • [ ]Wood [ ] Masonry [ ] Concrete [ ]Metal • Other • Number of Stories 012ening Protection • None • Storm shutters on all windows meeting the minimum requirements of the International Building Code as adopted by the South Carolina Building Codes Council. • Impact resistant glass meeting the minimum requirements of the International Building Code as adopted by the South Carolina Building Codes Council . • Garage doors • Type For Com12anies Offering Flood Insurance Estimated Premium Description of Mitigation Measure Discount Percent or Other Credit or Rate Differential Range On a Direct Basis • Building Located in Flood Zone [ ]Yes []No • Flood Zone Designation [ ] N/A • First Floor ft I inches [ ] Above [ ] Below BFE • Flood Insurance [ ] Yes /_L ]_No • Elevation • Distance from Water Other • Disaster Recovery/Business Continuity Plan • Adjacent Exposures Estimated Total Maximum Discount .. The esttmate ts general m nature and based on mformatton currently on ftle. The actual amount may vary dependmg on the spectftc ctrcumstances of the msured or applicant. Please do not hesitate to contact your agent if you have questions about the mitigation techniques included in this form or other mitigation techniques that could result in a discount. Your agent will also be able to explain how increasing or decreasing your deductible may reduce your insurance premiums. IMPORTANT NOTICE OF PREMitJM DISCOUNTS Manufactured Housing Property Insurance Coverage Section 38-75-755 requires insurance companies to notify you of the availability and range of each premium discount, credit, other rate differential or reduction in deductibles for properties on which fixtures or construction techniques demonstrated to reduce the amount of loss in a windstorm have been installed or implemented. Securing your roof so it doesn't blow off and protecting your windows from flying debris are the two most cost effective measures you can take to safeguard your home and reduce your premium. M f t d H anu ac ure ousma ISCOUn 5 o· t Estimated Premium Description of Mitigation Measure Discount Percent or Other Credit or Rate Differential Range Roof covering (i.e., shingles, metal or tiles) Roof Attachment • Over the roof tie downs -Installation or addition (if factory installed strapping is existing) of metal strapping and ground anchors to resist the maximum wind speed for the site on which the home is located. The number of straps required must be determined by an engineer or qualified strap/anchor installer. • Diagonal straps attached to the frame -Installation of metal strapping to resist the maximum wind speed for the site on which the home is located. The number of straps required must be determined by an engineer or qualified strap/anchor installer. Seconda!Y Water Resistance • Roofing felt or other approved layer of protection between the shingles and the roof sheathing below. • No Secondary Water Resistance . O~enings Protection • None • Storm shutters on all windows meeting the minimum requirements of the International Residential Code. • Impact Resistant Glass . For Com~anies Offering Flood Insurance on a Direct Basis • Home Located in Flood Zone [ ] Yes [ ] No • Flood Zone Designation [ ] N/A • First Floor ft I inches [ ] Above [ ] Below BFE • Flood Insurance [ ] Yes I_L ]_No • Elevation • Distance from water Other Estimated Total Maximum Discount .. The est1mate 1s general m nature and based on mformat10n currently on file. The actual amount may vary dependmg on the spec1f1c Circumstances of the msured or applicant. Your deductible represents your share of the damages in the event of a covered loss. The higher your deductible, the more money you save on your premiums- but the greater your out-of-pocket cost will be in the event of a covered claim. The deductible(s) available to you depends on your policy type, property location and amount of insurance. Some combinations are not available. See your policy Declarations for your current deductible(s) or contact your insurance agent or the company for more information. Wind and Hail Deductible Options (if offered as a separate deductible) Deductible Options HOMEOWNERS DWELLING FIRE RENTERS $ $ $ $ $ $ $ 1% 2% 5% Other The deductible(s) available to you depends on your policy type, property location and amount of insurance. Some combinations are not available. Deductible Options HOMEOWNERS DWELLING FIRE RENTERS $ X X X $ X X X $ X X X $ X X X $ X $ X 1% X 2% X Other X Please do not hesitate to contact your agent if you have questions about the mitigation techniques included in this form or other mitigation techniques that could result in a discount.