Florida Uniform Mitigation Verification Inspection Form to be Updated in Two Steps: Statutory Revisions, then Further Rulemaking on Specific Concerns

 

 

Yesterday, September 22, 2010, the Florida Office of Insurance Regulation (“OIR”) held a Rule Development Workshop on proposed Rule 690-170.0155, entitled “Forms.”  Although the Rule regulates additional forms, the Workshop specifically focused on revisions to Form OIR-B1-1802, also known as the “Uniform Mitigation Verification Inspection Form (‘Form’).”

OIR officials presiding over the Workshop included Deputy Insurance Commissioner Belinda Miller, Deputy Director Mike Milnes, OIR Actuary Ken Ritzenthaler and OIR Attorney Steve Fredrickson.

Ms. Miller opened the Workshop by explaining that its primary purpose is to implement the statutory changes to the Form effected by the 2010 enactment of House Bill 663.  The Form is used to record and validate an insured property’s wind mitigation features.  This documentation is then used to substantiate the provision of corresponding insurance premium discounts. 

To develop this particular Rule, Ms. Miller explained that she anticipates a multi-step process:  First, the proposed Rule will be submitted for final adoption to the Financial Services Commission (“FSC”) in order to implement the new statutory requirements as quickly as possible.   Then, to further improve it, the OIR will hold further workshops and hearings on specific aspects of the Form.

As part of the Workshop, Frank Lavelle from Applied Research Associates, Inc. provided a presentation on the Form, along with his recommendations for its improvement.  Mr. Lavelle noted that the current version of the Form is subject to interpretations and judgment and therefore, should be simplified.  He also said that, for a mitigation discount process to be effective, licensure and professional qualifications should be considered secondary requirements to inspector training and quality assurance programs.  He also recommended a structured schedule for regular updates to the Form, such as every two years.

Mr. Lavelle’s additional suggestions for revising the Form included:

• Building Code:  This section should be simplified to specify whether a structure complies with the Florida Building Code.

• Roof Cover:  Revert to the 2007 version of the Form that includes substantiation of roof cover type. As a roof ages, provide for its phase-out.

• Roof Deck:  The number of nails per 48″ should be recorded. The use of any types of nails, other than common ones, should be addressed.

• Roof-to-Wall:  No changes suggested

• Roof Shape:  Remove the entry for flat roofs.  Record the total length of a hip roof.  Record the percentage of features that are non-hip-roof-related.

• Gable End Bracing:  Since this entry is not on the OIR-B1-1699* Form, it should be removed.

• Wall Construction:  Since this entry is not on the OIR-B1-1699 Form, it should be removed as well.

• Secondary Water Resistance:  No changes suggested.

• Opening Protection:  This section needs improvements, such as separate recording of the protection level of glazed or non-glazed skylights.

Mr. Lavelle also suggested that space should be added to the Form to document certain other mitigation features, such as whether a building is one story or two stories, what roof cover type (shingle or title) it has, the degree of roof slope, whether the roof is made with structural wood paneling or soffit construction.

During the public testimony portion of the Workshop, interested parties offered additional suggestions to improve the Form, such as including the application and installation dates of the roof covering, specifying the training requirements for home inspectors, and documenting roof and gable end bracing geometry.   The OIR officials indicated that these comments will be considered in the subsequent rulemaking process.

The OIR also intends to revise the five-year Form validity language to clarify that re-inspections are valid.

It is expected that proposed Rule 690-170.0155, as currently drafted applicable to the Form, will move through the rulemaking process towards final adoption as quickly as possible in order to comply with Florida’s new statutory requirements. 

As required by law, a Rule Hearing will be scheduled and held, if requested.  Then, proposed Rule 690-170.0155 would go to the FSC for final adoption.  As noted above, future hearings are expected to address some of the Form’s ambiguities.

To view an up-to-date, revised copy of the Form, click here. 

To access audio files from yesterday’s Workshop, click here.

The record will remain open through October 1, 2010 for additional written comments.

 

Should you have any questions or comments, please feel free to contact Colodny Fass.

 

*Note:  Form  OIR-B1-1699 provides notice of premium discounts for hurricane loss mitigation.  To view the most recent version of this form, click here.