As the 2024 Atlantic hurricane season commences, forecasted to be notably intense, North Carolina braces for potential challenges posed by its building codes and insurance regulations. Experts warn that recent legislative changes could exacerbate insured losses in the state.
North Carolina Insurance Commissioner Mike Causey urged a comprehensive approach to decision-making, emphasizing the importance of considering diverse perspectives beyond solely those of home builders.
In 2023, the North Carolina Home Builders Association advocated for adjustments to building codes to expedite home construction amidst a housing shortage crisis. The resulting House Bill 488, passed despite the governor’s veto, established a distinct residential building code council with appointments made by lawmakers, altered energy-efficiency code adoption, and limited local government authority regarding plywood sheathing inspections during construction. While these changes aimed to address construction delays, critics argue they compromise structural integrity, particularly in high-wind areas.
The Insurance Institute for Business and Home Safety (IBHS), supported by former FEMA leadership, condemned House Bill 488 as regressive, diminishing the state’s resilience against escalating hurricane threats. Consequently, North Carolina’s IBHS storm-resiliency rating dropped, signaling increased vulnerability compared to states with updated building code standards.
The state’s adherence to 2015 building code requirements, overlooking advancements in neighboring states, prompted concerns regarding future resiliency. Additional legislative measures, such as House Bill 893, may further erode North Carolina’s standing in resiliency rankings, potentially jeopardizing insurance premiums.
Amidst growing consensus on the role of robust building codes in mitigating losses and containing insurance costs, experts advocate for balancing stringent standards with practicality. Enhancing property fortification through mitigation funding has shown promise in reducing damages and insurance claims, as evidenced by North Carolina’s wind-mitigation roof program.
Supported by analyses from North Carolina State University and others, the program’s success underscores the efficacy of proactive mitigation strategies. Efforts to incentivize fortification grants, including proposed federal legislation to exempt such grants from taxation, highlight ongoing initiatives to bolster community resilience.
As North Carolina prepares for an active hurricane season, the intersection of building codes, insurance policies, and mitigation strategies remains pivotal in safeguarding against escalating risks and preserving community well-being.
