Building Energy Codes and Insurance Underwriting

Energy codes play an important role in a building’s resiliency, and they are just as significant as other life safety codes. A more resilient building can be defined as a building that is prepared for, can recover from, and can more successfully adapt to future adverse events. Each year, insurance companies are responsible for paying billions of dollars in the United States for repair/reconstruction of buildings as a result of various natural disasters, and these costs are inflated by out-of-date codes. Older versions of model energy codes allow too many homes and buildings to be built below the level of quality that can withstand predictable levels of storms. Although not a perfect solution for all conditions, updated building codes, including energy codes, provide a level of protection from wind, extreme heat and cold, fire, and other hazards.

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