Florida’s top insurance regulator ordered State Farm Florida to give money back to policyholders who made home improvements to reduce damage from wind storms, but did not get a discount on their policies.

The refunds or credits will total $120 million and go to both current and former policyholders, according to a release from the Florida Office of Insurance Regulation.

State Farm also must pay a $1 million penalty to the Florida Insurance Regulatory Trust Fund, the release said.

The money will go to policyholders who did not apply for or who did not receive the windstorm loss reduction rating plan discount for making their homes more resistant to wind damage. Steps taken by consumers to reduce storm damage help to keep property insurance costs down, Florida Insurance Commissioner Kevin McCarty said in the release.

The order follows a July notice to State Farm of an investigation by the state office into whether the company was properly implementing the mitigation discount program. As the result of an internal review, State Farm identified nearly 98,000 current or former policyholders to whom it will provide credits or refunds, the release said.

State Farm policyholders who are entitled to the refunds will receive a notice from the company, the release said. They include policyholders who currently have, or did have, a homeowners, renters, condominium unit owners, apartment or condominium association policy.

State Farm has 90 days to prepare the credit or refund process and 365 days for all credits or refunds to be issued, the release said.

The state said it would conduct a follow-up compliance audit in 12 months.

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