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State Fails To Track Inspection Savings

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By JOHN W. ALLMAN, The Tampa Tribune

Published: February 6, 2008

Updated: 02/06/2008 12:55 am

TAMPA - My Safe Florida Home officials like to brag about how much money the hurricane inspection and grant program is saving homeowners on their wind insurance premiums.

They tout the savings in news releases to encourage more people statewide to sign up for a free hurricane wind inspection. Homeowners receive an insurance form after the inspection listing possible discounts, which they can then submit to their insurance provider.

Even Chief Financial Officer Alex Sink, whose Department of Financial Services oversees the program, can't help but boast.

In an interview in December with The Tampa Tribune, Sink said that when she talks to groups about the program, she tells them: "I'm here today to save you some real money."

The average discount she tells people they can receive is about $200 a home statewide.

But that average isn't based on actual homeowners receiving verified savings.

It's based, according to the state, on a complicated calculation that considers what the possible discount could be.

So how many people are actually saving money on their insurance premiums as a result of receiving a My Safe Florida Home inspection?

Officials have no idea. They don't track how many people submit the form.

"The homeowner has to take that next step to pursue those discounts," said Tami Torres, special programs administrator. "We only know the universe of homeowners who are potentially eligible for savings."

Torres said insurance companies are not required to disclose specific policyholder information, which would show who has received a discount.

As of November, officials said more than 78,000 people who had gotten a free inspection were eligible to receive an insurance discount.

The Tribune, in a Jan. 17 public records request, asked for all documentation on file with the state that showed specific examples of people paying less.

On Feb. 1, the state provided e-mails from 17 homeowners.

Not Everyone Is Happy

Not all of those individuals told the state how much they were saving.

The Tribune spoke to nine of the homeowners about their experience. Four people said they are now paying between $2,000 and $4,500 less. Three others said they are paying at least $1,000 less.

Not everyone is happy, though.

"What they make it sound like you're going to get and what you actually get isn't all that great," said Tony Ahrens, 45, of Melbourne. "What it was, was a small pittance."

Ahrens said he received a $200 discount. He said his insurance company initially rejected his request for a discount until My Safe Florida Home officials intervened.

But Ahrens also said he experienced a lengthy delay due to problems with his inspection report, which resulted in having to get a second inspection.

"They just really seem like they don't know what they're doing," he said of the program.

Torres said insurance providers must honor the discounts, per state law. She said officials have had to intervene a handful of times, but no company has refused to comply.

"My insurance company knew nothing, or they claimed they knew nothing, of the program," said Elizabeth Bradley, 49, of Cutler Bay in Miami-Dade County. "I had to fight for every penny."

Bradley's premium dropped by about $2,356 based on the findings of her inspection report. Her previous policy did not account for the new roof she installed after Hurricane Wilma. It also didn't reflect the new hurricane-rated garage door, storm shutters and roof reinforcement.

My Safe Florida Home officials went to bat for her, she said, and she got her discount.

Holding Insurers Accountable

So how did the state determine the average savings of $200 per home?

Program officials said the average discount was determined by reviewing the rates charged by 168 insurance companies, including any discounts offered for safety features. The rates are on file with the state Office of Insurance Regulation.

The state database that generates inspection reports pulls information from the rate filings and matches that against how much someone applying for a free inspection says they are paying for insurance.

The state then calculates the average discount for all 67 counties based on the average wind premium being paid in each county.

In Hillsborough County, the estimated average premium is $776 and the average discount is $128, according to state records. In Pinellas County, the estimated average premium is $1,156 and the average savings is $179.

The insurance form given to homeowners also helps, officials said, by identifying any existing safety features that are eligible for a discount and recommending safety improvements that could result in a discount.

"This inspection report helps spark that possibility, that opportunity, for the homeowner to access those discounts," Torres said. "What better way to hold insurance companies accountable for providing homeowners discounts for which they are entitled."

Reporter John W. Allman can be reached at (813) 259-7915 or jallman@tampatrib.com.

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