Modern building codes are being credited for the roughly 50% decline in post-hurricane mortgage delinquency rates, according to a new report from the Insurance Institute of Business & Home Safety and CoreLogic.
The report cited the building codes that emerged in 2002 and noted that homeowners in these properties were less likely to experience mortgage delinquency following a hurricane when all other factors were equal.
“When building codes are strong and effectively enforced, we see less structural damage, and families have a better chance of staying in their homes with less financial uncertainty in the aftermath of a damaging hurricanes,” said Dr. Ian Giammanco, managing director of codes and standards at IBHS. “This shows not only do modern building codes and the system of enforcement reduce damage, but they also strengthen the resilience of the financial sector, helping to keep communities intact.”
“Modern building codes provide stability when weather-related disasters occur,” said Tanya Havlicek, principal, science and analytics at CoreLogic. “As we seek adaptive solutions to the growing impacts of climate change, modern building codes are a proven mitigation tool to reduce the damage, disruption and displacement that comes with severe weather.”
The report is publicly available on the CoreLogic website.