Fortified existing property insurance discount / rate reduction

How it works

Minnesota Statutes § 65A.298 also requires an insurer to provide a premium discount or insurance rate reduction to an owner who retrofits an existing property to meet the requirements to be an insurable property in Minnesota. The statute defines “insurable property” as a residential property designated as meeting Fortified program standards that include a hail supplement as administered by the Insurance Institute for Business and Home Safety (IBHS).

What the money covers

This is an insurance pricing benefit, not a cash payment. The required discount applies to qualifying retrofit work on existing property and, like the new-property provision, applies only to policies that include wind coverage.

Amounts and matching

The statute does not set a fixed statewide dollar amount or percentage. Participating insurers must submit actuarially justified rates and a rating plan for retrofit cases. The insurer may also offer more generous mitigation adjustments beyond the required discount.

How to apply

To claim the discount or rate reduction, the owner must submit an IBHS certificate showing proof of compliance with the Fortified program standards to the insurer before receiving the benefit.

Timing and deadlines

The statute does not give a homeowner application deadline. For insurer rate filings, the rating plan generally cannot be used until 60 days after filing unless the commissioner approves it sooner.