Costal properties in the state of Connecticut can save money on homeowner’s insurance premiums by following a few of the recommendations offered by the Institute for Business and Home Safety (IBHS). Those properties located within 2600 feet from the coast are encouraged to install plywood window protection like shutters as recommended by IBHS. Insurance companies may require additional mitigation measures be taken to help protect the home against a potential loss.
Choosing not to implement any of the mitigation measures is not cause enough for the insurance company to refuse coverage. They do, however, retain the right to offer coverage with a 2% hurricane deductible. If your insurance company does impose a hurricane deductible, the insurance company must display the hurricane deductible on the policy’s declarations (front) page. Additionally, they must notify you at policy renewal that you will be subject to such a deductible. The insurance company has to have actuarial data to support the hurricane deductible.
If your property becomes subject to the hurricane deductible, you should receive a discount on the premium to compensate. Let’s face it; a deductible is a reduction in coverage. Any coverage reduction should be met with a premium reduction.
If you choose not to implement the mitigation measures (i.e., installing plywood shutters), the insurance company, by law, cannot “non renew” your policy. Homeowners have the choice of either implementing the measure s or accepting a hurricane deductible. If you as the policyholder choose not to accept either, then the insurance company has the right to non-renew your policy.
It makes since that homeowners would want to do all that it takes to protect their homes. A home is a large investment and shouldn’t be taken lightly. Check with your insurance company to find out if implementing more than one mitigation procedure would grant more of a premium reduction. Insurance companies like to insure properties that have a small chance of sustaining damage and usually reward insured by way of lower premiums. It’s worth protecting your home.