Modern Building Codes Hold the Key to Reducing Disaster Costs

The rising frequency and severity of natural disasters demand immediate attention to outdated building codes, which exacerbate the cost and impact of climate risks. Mark Berven, CEO of Nationwide Property & Casualty Insurance Co., emphasizes that modernizing building codes could save billions in disaster losses, as highlighted in FEMA’s "Building Codes Save" report. Universal code adoption could prevent over $600 billion in losses by 2060, with states like Florida and Virginia already showcasing the benefits of stricter regulations. Florida alone saved up to $3 billion during Hurricane Ian thanks to its modern standards.

Despite these benefits, fewer than a third of hazard-prone jurisdictions have adopted modern codes, with some states lacking statewide mandates. Obstacles like perceived enforcement costs and affordable housing shortages hinder progress. Yet, initiatives like the Insurance Institute for Business & Home Safety’s FORTIFIED standards demonstrate the cost-effectiveness of resilient building practices. Programs like Strengthen Alabama Homes provide financial incentives for homeowners to retrofit properties, yielding reduced disaster claims and insurance discounts.

Berven calls for immediate action and collaboration among stakeholders, urging policymakers to prioritize resilience. Public outreach is also critical to educate communities on the essential role of modernized building codes in mitigating disaster risks.