(a) An insurer shall offer at least one actuarially justified premium discount on a policy of homeowner's insurance to a policyholder who submits proof of improvements made to the insured premises as a means of mitigating loss from a hurricane or other storm.
Means of mitigating loss
(b) Means of mitigating loss include:
(1) the installation of one or more of the following:
(i) hurricane shutters;
(ii) secondary water barrier;
(iii) reinforced roof coverings;
(iv) braced gable ends;
(v) reinforced roof to wall connections;
(vi) tie downs; and
(vii) reinforced opening protections;
(2) repair or replacement of:
(i) exterior doors, including garage doors;
(ii) hurricane resistant trusses, studs, and other structural components; and
(iii) repair or replacement of manufactured home piers, anchors, and tie down straps; and
(3) any mitigation effort that materially mitigates loss from a hurricane or other storm otherwise covered under the policy.
Inspection of improvements by licensed contractor
(c) Improvements made to the insured premises under this section shall be inspected by a contractor licensed by the Maryland Department of Labor.
Inspection of improvements by insurer
(d)(1) An insurer shall be allowed to inspect the improvements that are the basis of a premium discount under this section.
(2)(i) Verification of improvements that are the basis of a premium discount under this section rests with the insurer.
(ii) An insurer may accept an inspection certificate issued by a governmental agency as verification of improvements that are the basis of a premium discount under this section.
Premium discount requirements
(e) A premium discount offered under this section shall:
(1) comply with the provisions of Title 11 of this article; and
(2) only be offered for improvements identified by the Commissioner as qualified mitigation actions made to the insured premises that may materially mitigate loss from a hurricane or other storm otherwise covered under the policy.
Annual statement relating to availability of discount
(f)(1) An insurer that offers a premium discount under this section shall provide a policyholder with an annual statement regarding the availability of the discount and the method of applying for the discount.
(2) The notice required under paragraph (1) of this subsection may be sent with the statement required under § 19-205 of this subtitle.
(3) An insurer may comply with the renewal notice requirements of this subsection by sending the notice authorized by § 19-216 of this subtitle.
Delivery of notice by electronic means
(g) The notice required by this section may be delivered by electronic means if the insurer complies with the requirements of § 27-601.2 of this article.
(h) The Commissioner may adopt regulations to implement the provisions of this section.
Added by Acts 2008, c. 540, § 1, eff. Oct. 1, 2008. Amended by Acts 2017, c. 123, § 1, eff. Oct. 1, 2017; Acts 2017, c. 124, § 1, eff. Oct. 1, 2017; Acts 2019, c. 91, § 7.