Should homeowners be rewarded for taking steps to reduce hurricane damages on their houses? Mississippi Representatives Michael Janus, Steven Palazzo, Jim Simpson and Hank Zuber say yes. 

Until earlier this year, the Republican group of reps, particularly Janus, was pushing for House Bill 753. HB 753 proposed reasonable premium discounts, credits or other rate differentials, or suitable cut in deductibles for homeowners who take the effort to install fixtures or implement construction designs that reduce damages caused by windstorms. 

Also known as the insurance mitigation program, it would provide homeowners hurricane-proofing options for their homes in exchange for reduction on their insurance bills. The home improvement options include, but not limited to, fixtures or construction techniques for augmenting:   

-Roof strength

-Roof covering performance

-Roof-to-wall strength

-Wall-to-floor-to-foundation strength

-Window, door and skylight strength

-Opening protection

While the program would be voluntary for homeowners, the discounts they are entitled to would be mandatory for insurance carriers. If passed, insurance companies must make a rate filing that take account of the credits, discounts or other rate differentials by January 1, 2008. 

The discounts and other benefits would be determined by the Department of Insurance and will reflect the full actuarial value of that revaluation, which may be used by carriers in their rate filings. 

House leaders clarified that they have no objection to the insurance mitigation program and the expiration of Janus’ HB 753 in February was merely due to "oversight." However, Coalition to Build a Safer and Stronger Mississippi spokeswoman Marsanne Golsby blamed Democratic Rep. Ricky Cummings for deliberately killing the bill by not bringing it up before the County Affairs Committee. Cummings defended his position claiming the establishment of building codes is a local issue.

State Sen. Billy Hewes III, however, managed to keep insurance mitigation program alive by tacking it to various Senate bills. Last month Senate unanimously passed House Bill 753, which excludes hunting and fishing camps from building code regulations, with the "insurance mitigation" program as an add-on.   

Hewes said the insurance mitigation program was designed to encourage homeowners to implement additional construction measures beyond the mandated basic codes and meet the minimum requirements of the International Residential Code or the International Building Code. The senator believes fortified houses would translate to lower risk to insurance companies and greater safety for homeowners.  

State Sen. Alan Nunnelee, a member of the Senate Insurance Committee that approved the bill, said Mississippi’s insurance crisis could be relieved by a strong, practical statewide building code. 

This time Cummings said he would consider the amended HB 753 and will work with its supporters - if they’re willing to work with him in his bid to pass the use of freshly cut lumber that has not yet dried. Even if Cummings succeeds in neutralizing HB 753 the second time around, the insurance mitigation program still has another chance. 

The Senate, via the amended Senate Bill 2851, also adopted Hewes’ insurance mitigation program. SB 2851 mandates compulsory building regulations for businesses in Hancock, Harrison, Jackson, Pearl River and Stone counties. While local governments in other areas will not be compelled to adopt the building codes, the proposed legislation would make sure that they must apply the International Building Code or stronger regulations when they do implement construction policies. 

The fate of the Senate bills now rest with the House, which has opposed building-code regulations in the past, including Republican Sen. Mike Chaney’s proposal for stricter statewide mandatory building codes.

Source