A study at the University of Alabama has found that homes built to fortified standards established by the Insurance Institute for Business and Home Safety (IBHS) experienced 15% to 40% lower claims severity and at least a 55% drop in loss frequency.
The research examined how the construction standards performed against high winds and heavy rain during Hurricane Sally.
The review analyzed claims data from 88 insurers and determined that the combined reduction in severity and frequency lowered policyholder deductibles by more than 60%.
Alabama launched its home-hardening program in 2021 and now has 53,000 IBHS-certified homes. Hurricane Sally in 2020 was the first storm to hit an area with a large concentration of fortified roofs, allowing the state regulator to evaluate their performance during a Category 2 hurricane.
Mark Fowler, Alabama’s insurance commissioner, said that while officials had seen evidence that fortified homes fared well during Sally, the data confirmed the standards’ effectiveness in real-world storm conditions.
"The fortified system exceeded every expectation and proved that mitigation works not just in a controlled lab setting but for real-world threats we face in Alabama and along with Gulf Coast,” Fowler said.
Regulatory developments are also in the work to continue improvements. In March, federal lawmakers introduced a bill proposing a nationwide home-hardening grant program, offering up to $10,000 in tax-exempt funds for projects such as installing impact-resistant roofs and backup power systems.
The legislation also included a 30% federal tax credit for qualifying upgrades, with eligibility based on income thresholds to prioritize lower- and middle-income households.
Additional research has shown similar benefits in other states. A Louisiana Legislative Auditor review reported that homeowners in Louisiana with fortified roofs saw annual insurance premiums fall by 22%.
The state launched its program in 2023 after Alabama’s results were made public, according to former Louisiana insurance commissioner Jim Donelon.
Regulators in Oklahoma and Mississippi have also highlighted Alabama’s outcomes in promoting their own mitigation initiatives. Mississippi Insurance Commissioner Mike Chaney has said the state’s home-hardening program was halted due to political opposition, making Mississippi the only coastal state without such a program.
In April, Alabama’s legislature also notably adopted House Joint Resolution 220, which targets the stability of the coastal commercial insurance market. The measure encourages wind-resistant construction in commercial properties, evaluates the use of targeted tax incentives and grant programs, and considers expansion of wind pool coverage.
Oklahoma, meanwhile, has expanded its Strengthen Oklahoma Homes program, which provides $10,000 grants to homeowners for approved projects. The state’s insurance department recently began the third and final phase of its pilot, available in selected ZIP codes, and has cited the Alabama study as supporting evidence of the program’s potential market impact.
Across the Gulf Coast, property owners have faced significant premium increases in recent years. Between 2021 and 2024, average homeowners insurance costs rose by 34% in Louisiana, 29% in Florida, 24% in Texas, 20% in Georgia, and 7% in Alabama, compared with a national average increase of 24%.
Rising construction costs, inflation, reduced federal disaster aid, and a contraction of insurer availability in coastal markets have been cited as contributing factors, creating added urgency for mitigation measures that can make properties more insurable and affordable in the long term.
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