International Hurricane Protection Association (IHPA) August 8, 2007

1. International Hurricane Protection Association (IHPA) August 8, 2007 Florida Department of Financial Services Alex Sink, Chief Financial Officer

2. Setting the Stage for the My Safe Florida Home Program • 2004 and 2005 hurricane seasons: $33 billion in insured property damage inflicted on more than 2.8 million Florida homeowners. • Florida is in a 10-year cycle of frequent and more intense storm activity. • There are approximately 4.4 million single-family, site-built homes in Florida representing $1.65 trillion in insurance exposure. • In a 2005 study, the National Institute for Building Sciences concluded that for every dollar invested in mitigation, there is a savings of $4.

3. My Safe Florida Home was created by the 2006 Legislature to: • Help Floridians better protect their property/assets • Help reduce future property losses • Help Floridians save money on their insurance premiums Strategies to Accomplish These Goals: • Provide free home inspections to 400,000 Floridians • Provide matching grants up to $5,000 to 35,000 Floridians • Foster a culture of preparedness through home hardening efforts • With public (homeowners and the media) • With providers (manufacturers, inspectors and contractors) • With industries (insurance, realtors and builders)

4. Who is eligible for My Safe Florida Home program? Free Wind Inspections • Single-family, site-built homes statewide *Matching Grants up to $5,000 • Insured value of $300,000 or less • Owner occupied (valid homestead exemption) • Permit to be built issued before March 1, 2002 • Located in wind-borne debris region *Match waived for eligible low-income homeowners

5. Pilot Phase • Develop website/information for homeowners • Develop application process for homeowners • Handle mass influx of calls, emails and letters • Develop curriculum for inspectors • Background check, drug test and train inspectors • Develop pilot hurricane rating scale • Develop technology to generate inspection reports • Develop application process to sign up contractors • Develop grant application and reimbursement process • 14,000 INSPECTIONS COMPLETED

6. STEP ONE FOR HOMEOWNER: FREE WIND INSPECTION • Apply Online Or By Phone • Contacted To Schedule An Inspection Within Two Weeks • Once Inspected, Report Received Within 45 Days

7. Inspection Report Gives Homeowners: • Improvement Plans Up to 7 retrofit improvements • Cost estimates to make improvements Regionalized estimates • Projected insurance savings • Hurricane-resistance rating scale 0-100 scale based on structure plus location

8. Recommended Retrofit Improvements 1. Roof deck attachment 2. Secondary water barrier 3. Code-plus roof coverings & attachment methods *4. Bracing gable end walls 5. Strengthening roof-to-wall connections *6. Protecting or replacing window openings *7. Protecting or replacing doors • Entry and Garage Doors

9. Snapshot of 97,000 Inspection Applicants • 85% of applicants are living in homes with an insured value of $300,000 or less • Nearly 50% of applicants are paying a wind premium between $1,500 and $3,000 • 92% of applicants live in homes built before 2002

10. Results from Inspections To Date • Of 79,000 inspections completed to date, more than 52,000 homeowners were eligible for discounts based on the existing structure of their home. • On average, these homeowners were eligible for 17.5% in premium discounts (or a savings of $310 on an average windstorm premium of $1,776) without first nail being hammered. • Average total cost of most aggressive improvement plan (Plan C) was less than $10,000 (in line with the $5,000 matching grant) • On average, homeowners rated 43 on hurricane resistance rating scale of 0 to 100.

11. Results (continued) Plan A: Estimated Costs $3,917 Average Discounts* 23% Rating Scale Moved 43 to 54 (9-point increase) Plan B: Estimated Costs $6,324 Average Discounts* 26.5% Rating Scale Moved 43 to 62 (19-point increase) Plan C: Estimated Costs $9,909 Average Discounts* 29% Rating Scale Moved 43 to 71 (28-point increase) *(Wind portion of premium)

12. STEP TWO: QUALIFIED HOMEOWNER CAN APPLY FOR A MATCHING GRANT UP TO $5,000 Process: • Homeowner Fills Out Grant Application Online or By Phone • Homeowner Sends in Proof of Homestead, Insurance, Building Permit if House was built in 2002 or Low-Income Status • Homeowner Receives Grant Approval with Reimbursement Forms • Once work is completed, Homeowner Submits Reimbursement Forms for Payment

13. Snapshot of 13,100 Grant Applicants • Estimated 9,400 homeowners have applied through DFS with 6,100 already approved and work is in progress • Approximately 600 homeowners have been reimbursed a total of $1.8 million (Average grant is about $3,000) • Nearly 54% of grant applicants live in South Florida, 31% are from the Tampa Bay area • Another 3,700 low-income homeowners being served by local governments/non-profits. Nearly 480 homes already completed.

14. Current Workforce for My Safe Florida Home • 11 inspection firms • 626 certified wind inspectors • Requirements • 924 licensed contractors (2,005 have applied) • Requirements

15. Steps to become a Participating Contractor • Log on to www.mysafefloridahome.com. • Click on “For Contractors” button. • Select “sign up to participate.” • Complete the online application. • You must agree to Participation Agreement before your application can be processed. • We verify you are licensed, have workers comp and have taken the appropriate training before we post your name on the My Safe Florida Home Web site as an approved contractor.  • We list approved contractors by county and by type of improvement.

16. Important Points for Participating Contractors • Labor and materials must be documented in your contract with the homeowner • If your measurements differ from inspection report, we need to know • Refer homeowners with grant questions to us • Can’t do work on your own home

17. Sample Bid Sheet • Provided to Homeowner in Inspection Report • Homeowners will use this bid sheet to get estimates from Contractors

18. Sample Reimbursement Form • This form must be completed and signed by the participating contractor.

19. Reimbursement Requests: What we look for • Did a participating contractor do the work? • Was permit pulled for the job (if applicable)? • Do # of windows and doors match inspection report? • Product approval # (FBC or NOA) • Actual costs in relation to estimated costs • Are forms completed and signed?

20. Next Steps • Ongoing support of inspections, grants training and public awareness • Enhance participation and communication among stakeholders • Data gathering/Analysis/Consumer Research • Continued funding

21. OPEN DISCUSSION/QUESTIONS HELPLINE # FOR CONTRACTORS: (800) 363-5852 www.mysafefloridahome.com Alex Sink, Florida’s Chief Financial Officer