Are you getting the insurance premium discounts you deserve? - al.com (blog)

A state law passed in 2009 requires that insurance companies discount the premiums of homes in Mobile and Baldwin counties that are built or retrofitted to meet building code standards. Yet many property owners and building inspectors have expressed doubt that the discounts are being properly applied.

Renee Carter, state director of the Alabama Insurance Information Service, said that homeowners should take a series of steps to make sure that they are eligible for, and receive, the discounts.

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Mobile and Baldwin property owners can use the information below — which comes from Carter's insurance industry group, the state Department of Insurance and the Alabama Legislative Information System Online — to try to get lower premiums.

• What building codes should I follow for a new home? To receive the discount, state law requires that new homes be built to the 2006 International Residential Code or to the Fortified for Safer Living standards from the Institute for Business and Home Safety, or IBHS.
• What building codes should I follow to retrofit an existing home? Generally, existing homes must be retrofitted to meet one of the three levels of the IBHS Fortified for Existing Homes standards in order to qualify for the discount. Other building standards may also qualify for the discount if approved by the state insurance commissioner.
• How do I certify that my house is built to code? After the property meets applicable code requirements, owners must get certification that the home is up to code before they can get a discount. Code evaluators can be found online: www.disastersafety.org/page?pageId=feh_evaluators
• What should I do if my home is certified, but I don't think I'm getting the discount? Talk to your insurance agent if you doubt that the discount is being applied. If the agent is unable to help, try contacting your insurance company.
• What if my company still isn't giving me the discount I should be getting? Contact the Alabama Department of Insurance if you believe your insurer is violating state law by not discounting the premiums for your code-compliant home. The department's main number is 334-269-3550.
• Can I get a better deal with another company? State law requires minimum premium discounts for homes built to code, but insurance companies may offer larger discounts. Shop around if your premium has been discounted but you think it should be lower.
• In what cases might the premium discount requirement not apply? The premium discount mandate only applies in Mobile and Baldwin counties. Additionally, the state insurance department only regulates admitted insurance companies, so it may not be able to help if a non-admitted, or surplus-lines, carrier refuses to offer the discount.