Florida insurance regulators have begun a once-every-five-year process to update the windstorm mitigation credits given to homeowners who harden their homes against storms. Part of the process includes updating the inspection form used to evaluate and certify the construction features of the home, especially the roof.

Former Florida Deputy Insurance Commissioner Lisa Miller sits down with a disaster consultant and a roofing products manufacturer who suggest further enhancing the inspection form to recognize more specialized, effective techniques that will maximize credits, increase resilience, and reduce costly damage from hurricanes.

Show Notes (For full Show Notes, visit https://lisamillerassociates.com/episode-65-pushing-floridas-building-envelope/ )

Joining Host Miller are Darius Grimes, President and CEO of Disaster-Smart Consulting, which provides inspection and consulting services, specializing in coastal risk, FORTIFIED Evaluations, and property-specific mitigation strategies; and James “Jimmy” Akins, Vice President of Technical Services, Warranty and Support for Polyglass, a large manufacturer of roofing products. The discussion focuses on updating Florida's wind mitigation inspection standards and improving roof resiliency through better underlayment technology.

“Loss of roof covering is responsible for about 70% of all hurricane claims,” said Grimes, quoting data from the Insurance Institute for Business & Home Safety (IBHS). “It’s not that the houses get blown away like they did in Hurricane Andrew. It's that you lose 20% to 50% of your roof covering, and water pours into the structure. And then all of a sudden, you've got $40,000 or $50,000 worth of water damage to the interior of the home. You can't live in it. There's no power to dry it out, and you end up displaced from your home or displaced from your community.” Grimes, with more than 30 years of experience in the construction industry, noted that when that happens, there can be a cascading effect on small businesses closing and loss of local tax revenue.

Regulatory Changes

Host Miller and her guests discussed the updates to Form 1802, an inspection form used by the Florida Office of Insurance Regulation (OIR) to certify home construction features for insurance discounts. The updated form, effective April 1, 2026, now includes specific references to the IBHS FORTIFIED Standard, “which is considered the national gold standard of wind mitigation materials and construction techniques,” said host Miller. She noted the updates generated concern among some stakeholders about whether the FORTIFIED Standard or the Florida Building Code should be the primary benchmark for mitigation.

Grimes said the only real difference on roofing between the Florida Building Code and the FORTIFIED Program is the requirement for re-nailing the deck. IBHS requires the deck to be re-nailed four inches on center with ring shank nails, and the Florida Building Code is six inches on center, he said. “As a test engineer, we discovered that if we reduce... (For full Show Notes, visit https://lisamillerassociates.com/episode-65-pushing-floridas-building-envelope/ )

While increasingly hostile weather has played a role in growing annual catastrophe losses that now average $132 billion globally, it’s actually non-hazard factors such as oil prices, construction materials, and labor costs that account for 80-90% of the cost. That’s the surprising research finding from global reinsurance broker Gallagher Re. The lines between “primary” and “secondary” perils also need rethinking.

Former Florida Deputy Insurance Commissioner Lisa Miller sits down with the chief researcher, and with the chief risk officer of one of Florida’s largest property insurance companies to discuss the importance of considering these non-hazard factors in rate calculations, and the need for better building codes, resilience efforts, and potential legislative incentives to mitigate risks and reduce costs.

Show Notes

Joining Host Miller are Steve Bowen, Gallagher Re’s Chief Science Officer and researcher behind the Q1 2026 Gallagher Re Natural Catastrophe and Climate Report, and Ryan Hodges, Senior Vice President of Risk Management for American Integrity Insurance Company, headquartered in Tampa, Florida. The focus was on the practical implications the research findings have for insurance companies, reinsurers, policymakers, builders, and consumers alike. Miller opened the discussion by noting that global insured catastrophe losses now average approximately $132 billion annually and that severe convective storms − including thunderstorms, hail, tornadoes, and straight-line winds − have become major contributors to those losses.

The Rise of “Non-Hazard” Cost Drivers

While climate and weather patterns certainly matter, the Gallagher Re report concludes they account for only about 10% to 20% of the increase in insured losses over the past two decades.

“When you're looking at the overall frequency of events, there's not really any data that suggests that we're seeing an overall increase in the number of the events themselves,” said Bowen, who is also a meteorologist. “We’re starting to see some emerging signs that events are behaving a bit more radically, there’s more volatility than what we've seen before in the past, but it wasn't enough of an obvious signal for us to feel like this is really what's driving why losses continue to go up.”

The report found that 2008 marked a major shift in replacement and exposure costs, and identifies several major non-hazard contributors to the remaining 80% to 90% of rising loss severity, including:

• Oil price increases affecting asphalt roofing materials
• Rising labor and construction costs
• Supply chain disruptions
• Inflation and consumer price index increases
• Claims litigation and social inflation
• Urbanization and population growth in exposed regions

All of the above have led to the majority of higher replacement costs following catastrophes.

Urbanization and the Expansion of Risk

One of the non-hazard factors noted is the increasing concentration of... (For full Show Notes, visit https://lisamillerassociates.com/episode-64-hidden-cost-drivers-of-severe-storms/)

New guidance from Fannie Mae and Freddie Mac is reshaping the intersection of mortgage lending and property insurance − introducing greater flexibility that could significantly impact housing affordability and insurance availability in Florida and nationwide.

Former Florida Deputy Insurance Commissioner Lisa Miller sits down with leaders from the real estate and insurance industries to break down these changes, including the headline shift allowing roofs to be insured at Actual Cash Value (ACV) rather than full Replacement Cost Value (RCV). The discussion explores what this means for homeowners, condo associations, lenders, insurance companies, and Realtors − and the critical balance between affordability, risk, and consumer protection.

Show Notes (For full Show Notes, visit https://lisamillerassociates.com/episode-63-easing-insurance-requirements-on-mortgages/)

This episode examines major policy changes from the Federal Housing Finance Agency (FHFA), implemented through Fannie Mae and Freddie Mac, that aim to better align mortgage requirements with modern insurance market realities. The most notable update allows roofs to be insured on an Actual Cash Value (ACV) basis, while maintaining Replacement Cost Value (RCV) requirements for the primary structure of a home. These changes come amid rising insurance costs, reduced market participation, and increasing pressure on housing affordability.

Host Lisa Miller is joined by Danielle Blake, Chief of Residential Real Estate and Advocacy at the Miami Association of Realtors, and Karen Collins, Vice President of Property and Environmental Issues at the American Property Casualty Insurance Association (APCIA), to explore how these reforms could ease lending challenges while introducing new considerations for consumer awareness and financial responsibility. It also underscores a central trade-off in public policy: Affordability versus new risks for consumers.

Understanding the Shift: ACV vs. RCV

The new guidance allows roofs to be insured using Actual Cash Value, which factors in depreciation and typically results in lower premiums—but also lower claim payouts. While this creates affordability opportunities, it introduces new financial responsibilities for homeowners, who may need to cover gaps at the time of loss.

“Because ACV policies are cheaper, they also pay less at the time of claim, factoring in depreciation. It’s like auto insurance. If your car is totaled, you don’t get the money to buy a new car − you get the cash value of the car prior to the accident,” explained Host Miller.

The policy shift reflects growing recognition that roofs − particularly aging ones − are a primary driver of insurance losses and require a... (For full Show Notes, visit https://lisamillerassociates.com/episode-63-easing-insurance-requirements-on-mortgages/)