Whitepaper by CoreLogic® & IBHS
If building codes could help mitigate physical property risk during a landfalling hurricane, could this risk management strategy also help mitigate financial losses, specifically the risk of default over 90 days following a damaging event?
Scientists from CoreLogic and the Insurance Institute for Business & Home Safety (IBHS) asked this very question. This joint study outlines the answer to how building codes, their history and adoption impact mortgage payment performance after landfalling hurricanes.
The Federal Emergency Management Agency (FEMA) estimates that by 2040, the U.S. will have prevented $132 billion in cumulative losses thanks to the adoption of improved building codes. Unfortunately, as of November 2020, 65% of counties, cities and towns across the U.S. still had not adopted modern building codes.
The study investigates the areas of the U.S. affected by Hurricanes Irma (2017), Harvey (2017), Michael (2018) and Laura (2020).
Download the whitepaper and find out:
- Why each storm showed a mortgage delinquency uptick from 90 days following the event.
- Which era had building codes that resulted in the least risk for mortgage repayment following a landfalling hurricane event.
- Which factors in a home influence mortgage delinquency rates.