|
MITIGATION
Mitigation is the process of reducing the
exposure risk to damage from hurricanes through land use,
regulations, Building Codes & standards, construction
methods, and inspection.
Can you say your community is resilient?
"It starts with do you have and do you enforce codes that minimize the risks and hazards a community faces," Federal Emergency Management Agency Administrator W. Craig Fugate told attendees of ICC's 2011 Annual Conference in Phoenix. The keynote speaker of the Annual Banquet discussed the importance of adopting and enforcing safe and sustainable building codes to make communities more resilient to natural disasters.
This video
clip was recommended to HHII by Disaster-Smart Inspection
Consulting as showing 'great perception of the issues facing US at risk communities and right on target for providing a permanent solution to the Coastal Insurance Crisis. This is exactly what Smart Home Alabama, the Insurance Industry, Non-profit Consumer Groups, Academic Research Centers, Public Policy Experts, and Industry Experts have been working to implement over the last 15 years.'
You will see the speaker is a strong advocate for mitigation. HHII agrees
mitigation is a worthy goal but mitigation will NOT provide a
timely solution to the affordability problem highlighted in the
story below nor will it bring clarity
to the question of whether the insurance rates charged coastal county residents are fair and equitable
Posted 12/7/2011
High standards could have protected homes, residents
(MPR editorial)
A NEW study, conducted in part by University of Alabama engineers, reinforces the need for the state to consider stronger construction methods to protect people and property from storms.
A research team analyzed 150 homes that lay in the path of the tornado that ravaged Tuscaloosa on April 27. They found that many wood-frame structures on the fringes of the storm could have avoided catastrophic damage with simple additions — in some cases, metal clips or straps that cost about $1 each.
How many lives could have been saved had construction been just a tad stronger?
The researchers noted, though, that nothing could have protected what that lay in the direct path of the EF4 that skirted the UA campus with winds up to 190 mph. The work was funded by a grant from the National Science Foundation.
The study is timely because of a special legislative session on homeowners insurance that Gov. Robert Bentley is expected to convene this fall. Homeowners in the coastal counties — and to the north, since the tornadoes — have found it increasingly difficult to obtain affordable insurance for their property. In one fell swoop, for instance, Alfa non-renewed some 73,000 policies in north Alabama after the tornadoes.
One way to reduce the cost of premiums is to reduce the risk of damage. And one way to do that is to strengthen construction standards and ramp up building code enforcement statewide.
These issues deserve the immediate attention of Gov. Bentley’s newly formed Affordable Homeowners Insurance Commission, which is charged with seeking solutions to the insurance crisis and reporting to the governor before the session.
Legislators recognized the need for better construction when they approved premium discounts and other incentives for homeowners who retrofit their houses. But Alabama can do much more.
The study found, for instance, that basic changes such as wind-rated shingles, more anchors for porch columns and high-quality vinyl siding could have helped many homes in Tuscaloosa survive the tornado. Now, the homes that were destroyed will need to be rebuilt — an expensive proposition that makes it difficult for the community to rebound.
Meanwhile, homeowners in the coastal counties cross their fingers as they watch the tropics brew. The region is still recovering from the BP oil spill, and it certainly doesn’t need a hurricane to follow on the heels of the spill.
Yet Alabama doesn’t have to feel helpless. There are steps the state’s leaders can take to protect people and property, and make them more resilient in the face of disaster. These should include smarter building methods that — as the new study confirms — do not have to be elaborate or expensive.
Posted 8/2/2011
Fortified homes can save homeowners money
Kathy Jumper, Press-Register, June 5, 2011 -
Read original article
DAPHNE, Alabama - Jeffrey and Alicia Duncan will save an estimated $1,600 a year on insurance costs after their Daphne home is retrofitted to be safer and stronger in storm winds.
That's good news for the couple, who said they had paid $2,700 a year to protect their 2,100-square-foot home in Lake Forest before their insurer dropped them earlier this year as part of a larger withdrawal from the coastal market.
They found replacement coverage for $3,700 a year after consulting with the nonprofit Smart Home Alabama. They also got a bonus -- an offer to make their home more storm-resistant at no charge.
With a grant from State Farm and donations of time and product from local engineers, builders and vendors, Smart Home Alabama will upgrade three local homes starting this month.
Posted 6/7/2011
The ethical problem with the Fortification Funding Act
HHII welcomes passage of the Strengthen Alabama Homes Fund Act. The fund aims to pay all the costs of storm-proofing a typical home with oversight provided by the
Department of Insurance for approval of the grants and how much assistance a homeowner can
receive. It is expected that the fund would likely cover the $7,000 to $12,000 cost of a typical home’s
hurricane retrofitting. Homeowners needing to pay for more expensive retrofitting procedures could
have to cover some expenses out of pocket. The fund is linked to a law passed in 2009 that requires
insurers to lower premiums for residents of Mobile and Baldwin counties who build or modify their
homes to meet particular storm-proofing standards. Using the two programs in concert, a homeowner could end up with lower premiums and a more
resilient house, all without having to dip into a savings account.
The fund will be created as soon as
the governor signs the bill into law. But until it has a source of revenue, homeowners will not be able
to receive retrofitting assistance. Clean Water Act fines arising from the Gulf oil spill could provide a substantial amount of money to
the fund. But Congress has yet to agree on any plan to spend that money, which could total between
$5.4 billion and $21.1 billion, to Gulf Coast states.
However, there's a timeline problem and a fundamental ethics problem with its retrofitting fund approach. Neither kills the idea but it would be nice if work was done to remove both problems, especially the ethical blemish.
Timeline:
50,000 structures in need of retrofitting grants (Mobile/ Baldwin structures times the poverty percentage for our area) X $7,500 minimum retrofitting cost = $375 million divided by $20 million/ year = about 19 years to harden the coast. Probably longer. This assumes an infusion of $20 million/year in the new fund and that all the rest of us non-poverty people are going to retrofit
their structures on their own dimes. It also assumes the $7,500 price tag is
accurate. Each wrong assumption lengthens the amount of time before we harden the coast. Even so, even if we can only get 5 houses a year done and it's going to take 200 years, lets start moving in that direction. Fortification is a good idea.
Ethical problem:
All people will pay to retrofit other people's houses. Insurance companies will lower rates for those people who's houses are retrofitted (we're told), but they will leave unadjusted (in fact, they'll probably increase) the price of insurance for those who aren't immediately retrofitted. People are going to pay the high insurance rates (BP money, like tax money, belongs to everyone), perhaps even get penalized, plus pay, to lower the rates for others. This warped Devil's Way derives from the warped Devil's Way foundations of the modern insurance company. It can be fixed, but one must go into the ethics of the insurance cosmos and require company's to behave justly.
HHII opinion posted 5/7/2011
Fortified Construction
For more information regarding fortified
buildings check
WindMitigation.com
Posted 11/10/2010
Smart Home Alabama
Smart Home Alabama was
prompted by the desire to alleviate the suffering that resulted
from the collapse of the residential insurance market on the
Gulf Coast following Ivan and Katrina through education,
facilitation, collaboration and partnership.
Learn more at
www.smarthomealabama.org
Posted 11/14/2010
IBHS
The Institute for Business & Home
Safety’s mission is to reduce the social and economic
effects of natural disasters and other property losses by
conducting research and advocating improved construction,
maintenance and preparation practices.
View video at
www.disastersafety.org/videos
PPosted 11/14/2010
BCEGS
The Building Code Effectiveness
Grading Schedule assesses the building codes in effect
in a particular community and how the community enforces its
building codes, with special emphasis on mitigation of losses
from natural hazards.
Learn more at
www.isomitigation.com/bcegs
Posted 11/14/2010
|
Helping Baldwin County homeowners help themselves
1/18/2012 MPR article by Jane Nicholes
Baldwin County homeowners could finally get some relief from high hurricane deductibles under a proposal from legislators and local members of the Affordable Homeowners Insurance Commission.
The group proposes to create a countywide insurance authority that would help cover wind deductibles for homeowners. The plan could also lead to lower premiums on homeowners’ policies.
“It’s going to be up to us to find a solution to the insurance problems we have here,” state Rep. Joe Faust, R-Fairhope, said Tuesday during an Eastern Shore Chamber of Commerce legislative briefing.
Probate Judge Tim Russell, who chairs the homeowners commission, said later Tuesday that the county authority is not a formal proposal of the commission but an initiative involving legislators and local members of the panel, who include Faust. According to Russell, this is how it would work:
• The authority would be created by the Legislature through a local bill. It would, supporters hope, get initial funding from the distribution of BP fines for the Deepwater Horizon oil spill. The Baldwin County Commission has requested some $575 million for several projects.
• The authority would have the power to issue so-called “cat bonds,” which are bonds issued to cover catastrophic events such as hurricanes. Russell said cat bonds are sold worldwide, so there is not one buyer or one group holding all of them.
• Homeowner insurance deductibles generally are 5 percent of the value of a home. On a $100,000 home, 5 percent would be $5,000. But the minimum deductible would be $15,000 for assistance from the authority, Russell said.
• Homeowners could buy a separate policy through the insurance authority to cover the deductible. Or, they could apply for a loan after a wind disaster to cover their losses up to the amount of the deductible. And people with low incomes could be eligible for grants to cover the deductible.
• Because a major hurricane brings on a large number of relatively smaller claims in addition to large-scale damage, insurance companies should be able to reduce premiums because of the larger deductibles. “It takes a lot of their catastrophic exposure away,” Russell said.
• The authority would not be able to take on all of the homeowners in Baldwin County immediately, but would use actuarial studies to ensure that it could cover any claims. The authority would also serve as a model for other Alabama counties to adopt.
Faust said homeowners’ premiums could be lowered by as much as 35 percent.
Implementation depends on Congress awarding enough BP fine money so the County Commission can fulfill its “wish list” of projects. It also depends on local support, Faust said.
Russell said that it’s possible to get the necessary bill passed in the upcoming session. “I think it’s going to gain a lot of support,” he said.
Both Faust and Russell said Tuesday that the special session discussed by Gov. Robert Bentley for insurance matters is unlikely to take place anytime soon. Faust said he doesn’t think there will be a special session. Russell said that while a special session has not been ruled out, he thinks the legislation necessary for the authority could be handled in the regular session.
Orange Beach Mayor Tony Kennon said the proposal made sense to him because the coastal insurance crisis holds back economic development and full recovery from the oil spill.
“There’s no better use of that BP fine money than to solve the wind insurance problem,” Kennon said.
Faust said the affordable insurance commission has found that those parts of northern Alabama not affected by the April tornadoes continue to be indifferent to the crisis on the coast and its impact on the statewide economy through the loss of revenue from the tourism industry. The insurance authority approach lets counties take care of themselves.
“If there is a silver bullet, this is it,” Faust said.
Posted 1/19/2012
Baldwin leads by adopting new plan
Mobile Press Register Editorial (1/18/2011)
THE BALDWIN County Commission is boldly leading the way on homeowners insurance reform, and the rest of Alabama should take notice.
Commissioners this week voted unanimously to adopt updated international building codes, which can strengthen homes, increase competition among insurers and eventually help lower premiums for consumers.
In addition, Baldwin municipalities signed on to the higher standards, signaling that they, along with the commissioners, understand the significance of the insurance crisis and are willing to enact real reforms that can right the market.
The governor's Affordable Homeowners Insurance Commission can be credited with raising the level of conversation concerning homeowners insurance. It has held a number of listening forums statewide, which has spotlighted the need for reform.
The new code in Baldwin requires, for instance, that roofs be sealed at the time of construction or replacement. Homeowners will have to pay a small inspection fee, but in return they will get proof that their home has been upgraded. This can result in insurer discounts and lower premiums.
Indeed, implementing higher building standards can go a long way toward lowering the risk of property damage. This is a far better, and less expensive, approach than empowering governments to bail out communities after a hurricane or some other catastrophe hits.
Building stronger not only prevents damage, but by lowering the risk, it can attract more insurance companies to do business in the area. The ensuing competition, along with homeowner discounts, can result in much-needed savings. The Property Casualty Insurers Association of America, a trade organization, has even called for steps to improve competition and reduce rates.
Coastal Alabamians could certainly use a break on the premiums they pay. This past August, homeowners from the two-county area voiced anger and frustration at a forum held at the Mobile Convention Center. Many of them said they were at a breaking point financially because of policy cancellations, rising premiums and the inability to cover deductibles. Addressing such concerns can go along way toward making communities across the Gulf Coast more resilient.
There have been other proposed reforms, too. One suggestion is to create a countywide insurance authority to help homeowners meet their wind deductibles. Also, the local legislative delegation is expected to roll out a list of reforms by the start of the regular session in February.
Baldwin County's action this week is just a single piece of the reform puzzle, as one commissioner pointed out, but it's a big one that deserves a round of applause.
Posted 1/19/2012
Retrofit tax deduction won’t be enough
I am puzzled by the
Press-Register’s May 29 editorial ("Insurance has to be a statewide issue now"), which says insurance premiums would be reduced by Alabama tax deductions for those who build or retrofit their homes to resist tornadoes and hurricanes.
The editorial is parroting an insurance industry argument: Stronger homes will reduce insurance rates. It is a false argument based on a badly flawed premise: People can afford to retrofit. For example, this "solution" won’t help the elderly.
Almost 20 percent of Alabama residents are older than 65, and nearly 30 percent of coastal Alabama residents are 65 or older. The Kaiser Family Foundation has stated that median income for U.S. Medicare recipients is $21,000; median retirement savings is $2,000; median home equity is $60,000. Does this sound like a group who can afford to retrofit their homes?
Also, Alabama already gives a deduction for the extreme medical costs that most elderly suffer. This deduction, thankfully, virtually eliminates state income tax for most elderly faced with horrendous medical expenses at the end of life. Another tax deduction does nothing for this group.
Few elderly people can afford to build or retrofit their homes to upgraded building standards to hopefully obtain a relatively small reduction on annual premiums of more than $3,000 and deductibles of 5 percent of the home value. Do the math for your home.
The insurance industry will try to define the home insurance cost problem as homeowners with weak homes.
CRAIG SKAGGS
Posted 6/7/2011
State Senate approves hurricane retrofitting fund
The state Senate approved a bill Wednesday to create a fund that could accept oil spill fines, federal grants and money from other sources and give those dollars to homeowners seeking to retrofit their property to better withstand hurricanes.
The proposal does not allocate money from any particular sources to help homeowners with retrofitting costs. It only creates a place to hold money for this purpose, should dollars become available later.
Read
George Altman's
complete 4/28/2011 article at
Al.com
Posted 4/28/2011
Insurance Discount for Fortified Buildings Makes Progress
HHII has not been pushing this legislation because it does
not offer immediate premium reductions or coverage guarantees for
existing homes.
Several admitted carriers will be increasing the Fortified
credits to as high as 50%. Two admitted carriers are willing to insure
new clients that meet the Fortified standards. One major carrier is
offering the Fortified program nationwide, and is crediting Alabama as
the first state to endorse IBHS Fortified for Existing Homes program.
One non-admitted carrier will be issuing wind and hail only policy that
will compete with AIUA starting May 10th. Have a new A rated carrier
(Non-Admitted) entering the state next week. They are willing to insure
several thousand new policies. Mobile Bay will not be an issue. They
require detailed inspection but will give credits for Fortified homes
even though they are not required. More carriers looking to enter market
with the passage of seasoning bill. Fortified Habitat Open House is scheduled for May
27th., 2010
To find more information concerning insurance discounts applicable
to fortified buildings and how to apply, go to the undernoted links.
Requirements to qualify as fortified home
Alabama insurance discount benchmarks
Application Form
Originally posted 5/2010;
Revised & reposted 11/10/2010
|