Over the past two hurricane seasons, Florida has weathered the impact of eight major storms that have caused billions of dollars in losses and left untold numbers of citizens coping with damaged homes and the dislocation that comes in the aftermath of a major storm. Hurricanes Jeanne, Charley, Frances, and Ivan alone caused damage to one out of every five homes in the state. And the experts all agree that Florida is likely to see similar hurricane seasons for some years to come.

However, in contrast to previous decades, insurers and homeowners are no longer completely at the mercy of storm damage. For among the lessons learned in the last two hurricane seasons is that the tough statewide building codes passed by lawmakers in the 1990s, and the evolution of mitigation techniques, are working to protect property and reducing the dollar amount of damage.

Take for instance the results of a new report by the Tampa-based Institute for Business and Home Safety. The institute is a non-profit organization that focuses on finding and evaluating ways to reduce the property damage, economic losses, and human suffering caused by natural disasters. The IBHS report focused on assessing the performance of the new building codes. Included in the findings was this startling fact: In the aftermath of Hurricane Charley that struck southwest Florida in August 2002, only 130 demolition permits were pulled in Charlotte County and none of those were for homes built after 1992. In fact, engineers for the safety institute and other experts estimated that the new building codes were responsible for saving at least $40 million in damage in Charlotte County.

Building Codes Make a Difference

Florida instituted a tough statewide building code mainly as a response to Hurricane Andrew, which swept through the state in 1992. The first large storm to make landfall in the state in decades, Andrew exposed just how unprepared the state was to cope and withstand the effects of a natural disaster. As a result, lawmakers passed a law creating statewide building codes that set out minimum standards regulating the design, construction, and maintenance of homes and commercial property based on established scientific and engineering principles. A major portion of the building codes concentrated on implementing stringent requirements that would make homes in coastal areas more capable of withstanding the dam-age from high winds. The Florida Building Commission reviews the codes annually and more changes are likely this year.

“Florida's building code is one of the most outstanding in the country,” said Florida Insurance Council Vice President Sam Miller, who played a key role in working with the industry and commission to reach agreements on some of the code's key provisions.

The IBHS study was based partly on examining the number and details of rebuilding permits in some of the counties that were the hardest hit by hurricanes. Researchers found that in some counties there were 27 percent fewer rebuilding permits for homes built since the new codes took effect in 1994. Timothy Reinhold, vice president of engineering at IBHS, said the institute's study reinforced the argument that strong building codes can play a major role in reducing wind-borne damage. Still, he said, more changes are needed. For example, he said, the institute found that more needs to be done when it comes to protecting structures that are close to various bodies of water.

“We learn something new from each storm,” Reinhold said. “We still need some research to come up with affordable solutions. For instance, we found that houses beside lakes are more vulnerable to damage than we thought.”

Leslie Chapman-Henderson, head of the Tallahassee-based Federal Alliance of Safe Homes, said the IBHS study points the way for state policymakers and the insurance industry to place more emphasis on promoting better construction rather than just paying and repaying for the same hurricane losses. “Just increasing policyholder deductibles and worrying about reinsurance is not enough,” she said. “Everyone should now realize that the key to solving the insurance challenge is to build sturdier structures.”

Chapman-Henderson, who serves on a legislative task force on hurricanes and is a member of the Florida Hurricane Catastrophe Fund advisor committee, said citizens need to know that just having a evacuation plan in place and storing bottled water and flashlights is not enough. Instead, she said, the public needs to become educated about the importance and benefits of taking steps to protect their homes from extensive wind damage. “We do not need any more evidence to know what we need to do in order to change the cycle. It all starts at home. It's just insanity to build houses without this information.”

Controversies Remain

Even though the IBHS and Chapman-Henderson say the need for building codes are crucial to reducing hurricane damage, the codes have not been without controversy. For example, Senator Charley Clarey (R-Destin) was successful in limiting the building codes' application in the Florida Panhandle. Currently, structures from between Franklin and Escambia counties are exempt from the codes if they are over one mile from the coast. By contrast, in many areas in the state, the building codes extend inward by six or seven miles. Part of the reason for the exemption was that some building trade groups believed the stronger codes would represent an undue burden on low-income families. Further, some thought the forests in the Panhandle would limit the inland wind damage.

On the issue of whether the Panhandle counties should continue to be exempt from portions of the building codes, Reinhold said more study is needed to see whether the density of trees really helps diminish inland property damage. Still, he said, if it were up to him, he would require shutters on any home near the state's coastline.

Another controversial issue is the fact that the building codes only apply to new structures. To improve the large majority of house and businesses, money needs to be spent on mitigating existing structures so they can better withstand major storms. For example, Reinhold said one of the most effective mitigation techniques is reinforcing roofs. “Better roofs have a dramatic impact on maintaining the structure of a home,” he said.

FIC's Miller said the IBHS study confirmed the need to retrofit older homes and bring them up to code. “The building codes made a difference” he said. “Newer homes fared much better than older homes. There are glaring examples of how older homes were wiped out and a new home was not damaged at all.”

The argument against applying the building code to new construction and requiring older homes to be retrofitted has always been one of costs. Homebuilders have long said the costs of the changes must be passed on to buyers, which could have a negative effect on the industry and be a deciding factor against Floridians looking to purchase a home. However, Chapman-Henderson said the homebuilders' argument is shortsighted. “What is the cost of living in a FEMA trailer for 15 months,” she said, by way of putting the cost in perspective.

IBHS CEO Harvey Ryland said a cost-benefit study of houses built to the new Florida building code showed a range of higher costs between three and 10 percent. The cost, he said, depends on how the homebuilder constructs the home and what methods were used to reinforce windows, roofs, and other exposures. The study concluded there was a potential to break even or reduce the long-term costs to the homeowner. Even using the high-end estimate of 10 percent additional costs, the costs would be minimal when spread out over the life of a 15 or 30 year mortgage.

Governor Backs New Initiatives

There is widespread agreement that the answer to retrofitting older homes comes down to money. An IBHS study found that 53 percent of the study's participants had taken some steps to better protect their property from damage due to hurricanes. But Ryland and others agree that more resources are need. The insurance industry and safety experts are not alone in their quest to promote mitigation efforts around the state.

Governor Jeb Bush is backing a comprehensive plan that would pore $565 million into hurricane preparedness. Of that amount, $50 million would be earmarked to retrofit existing homes with priority given to low income homeowners living in wind-borne debris areas. It is all part of an approach to establish what Bush refers to as a “Culture of Preparedness,” when it comes to dealing with major storms.

“Hurricanes are a fact of life in Florida and every Floridian needs to have a plan for hurricane season,” Bush said as he announced the initiative. “Our ability to respond and recover from a hurricane is critical to our economy and our quality of life. A strong response and a quick recovery sends a message to businesses and tourists that Florida remains the best option for both investments and vacations, which keeps our economy strong.”

Miller applauded Bush's initiatives and said the insurance industry will play a major role in educating the public on how to prepare their homes for the next major storm. “We support anything the state can do to get Floridians as prepared as possible,” he said.

Bush's recommendations include the following:

The Division of Emergency Management would be charged with implementing a public education and information campaign to highlight the importance of hurricane preparedness. The division would receive $5.3 million to start the program.

Bush is recommending that the legislature authorize an annual sales tax holiday, which would coincide with the National Hurricane Preparedness Week that takes place in May. $42 million would be set aside for the holiday. Last year, Floridians saved more than $10 million on essential preparedness items such as flash lights, plywood, and other material.

Over the next several years, more than $300 million in federal funding would be invested to minimize damage from future disasters. Cities and counties throughout Florida would receive money for projects based on local priorities.

$29 million would be set aside to develop new technology to improve the understanding of the effects of storm surge. The new models would be used to serve as the scientific bases for updated regional evacuation plans.

$177 million would be used to create a Rental Recovery Loan Program, which would be used to build and rehabilitate affordable rental housing.

$98 million would be earmarked for locally-administrated Hurricane Housing Recovery programs that will be used to meet the housing needs of Floridians whose communities have been devastated by a major hurricane.

$2 million would be used to repair homes in communities that suffered severe losses in the 2004 and 2005 hurricane seasons.

Special Reports /

Hurricane Mitigation May Reduce Losses

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