Principles for Property Mitigation Discounts

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Encouraging property mitigation against catastrophes like floods and storms has become a major area of consensus for people on all sides of the debate over coastal insurance in hurricane-prone areas. Insurance regulators, advocacy groups across the political spectrum, and legislators all emphasize its importance. Mitigation essentially consists of efforts to prevent damage from disasters before the disasters take place.  But in a broader sense, mitigation can refer to almost anything, from minor, low-cost activities like picking garden plantings with deep roots in hurricane-prone areas to massive efforts like infrastructure construction and community-wide land use planning. While mitigation is uncontroversial on a general level, specific mitigation measures often arouse debate.

Property mitigation discounts has gained wide support around the country as a way to encourage mitigation. In concept, the idea that stronger homes should pay lower rates is non-controversial; nearly all homeowners’ insurers take construction type and characteristics into account for all properties they cover. Certain construction materials and techniques qualify for lower rates than others. To a certain extent, any property insurance policy issued already offers mitigation discounts.