Home Resiliency Programs May Help Lower the Cost of Home Insurance
Natural disasters have been increasing in frequency and severity over the last decade. Meanwhile, state insurance regulators have struggled to address the challenges associated with inadequate coverage and excessive premiums for single-family and multifamily dwellings. As a result, home insurance costs nationwide have spiked nearly 20% in two years, and fewer insurance options have curtailed new home construction in some places.
To address this growing challenge, NAHB is asking states to consider reducing home insurance premiums for structures built to modern codes or buildings that are constructed or renovated to meet the higher standards of a home resiliency program.
Studies show that homes built to building codes developed since the year 2000 are significantly more resilient to natural disasters than homes built to prior codes.
Home resiliency programs go a step further, encouraging home builders, remodelers and home owners to voluntarily build or upgrade to above-code standards that yield even more disaster-resistant homes.
Above-code programs include National Green Building Standard (NGBS) Green +RESILIENCE Certification, Insurance Institute for Business & Home Safety (IBHS) FORTIFIED standards and above-code programs in several states. In addition, HUD has developed Resilience Guides to help builders design homes for natural hazards, and NAHB has resources on retrofitting homes for resiliency.
NGBS Green +Resilience
This certification program is recognized by HUD’s Green Resilient Retrofit Program (GRRP), which provides funding for direct loans and grants for projects that promote green building practices.
To earn the certification, builders must demonstrate that their home provides at least 30% enhanced resilience and durability beyond the structural requirements of the International Building Code (IBC) or International Residential Code (IRC).
The NGBS Resilient Construction Sections also are design-based performance metrics, allowing resilience practices to be more customized for local weather conditions and natural hazards.
IBHS Fortified
IBHS is an independent, nonprofit organization funded by property insurers and reinsurers. The Institute provides resources and guidance for home owners on fortifying their home to withstand extreme weather, and the IBHS Research Center conducts realistic weather simulations to evaluate the structural design of their FORTIFIED roofing and building standards.
The FORTIFIED program offers three levels: Roof, Silver, and Gold, the latter requiring an engineered, continuous load path from the roof to the walls to the foundation, as well as story-to-story connections, pressure-rated fenestration, and stronger exterior sheathing.
In some states, homes built and certified to the FORTIFIED Gold standard may enjoy a significant discount on the cost of homeowners insurance.
This article originally appeared in the July/August 2025 issue of Pro Builder magazine, published by Endeavor Business Media, LLC. NAHB members have unlimited access to Endeavor Business Media, LLC’s online content and print publications focusing on key industry trends.