Evolution of Insurance Incentives for Wind-Resistant Construction since Hurricane Andrew

Lessons learned from building performance in Hurricane Andrew led to immediate improvements in the South Florida Building Code in 1994 and the eventual creation and adoption of the statewide Florida Building Code (FBC) in 2002. Alongside these building code improvements, numerous public and private programs to encourage wind resistant construction were also created. Concurrent with the adoption of the FBC, Florida Statute 627.0629 required all property insurers in Florida to recognize the wind resistive benefits of the FBC in their residential rate filings by February 2003. In effect, this statute requires insurers to provide discounts for homes that are built in accordance with the FBC, as well as to homes that were built prior to the FBC with similar wind-resistive features. The creation and implementation of this insurance incentive program has faced many challenges including: determination of the appropriate discounts by feature or combination of features, inspection protocols for documenting wind resistive features, dealing with intentional and unintentional errors introduced in the inspection process, and ensuring the actuarial soundness of the program. This paper discusses the evolution and current state of the mandated insurance discount program in Florida, its basis in wind engineering, and its implementation via wind mitigation inspections.