Nationwide survey: How stronger building codes reduce risk
As communities across the U.S. face increasingly frequent and severe weather events, the toll on property owners and insurers continues to grow. According to NOAA, between 2020 and 2024, the U.S. experienced 115 billion-dollar weather and climate disasters, totaling nearly $747 billion in losses. Yet despite this trend, 65% of U.S. counties, cities, and towns still lack modern building codes—leaving communities vulnerable to preventable damage.
What our 2025 survey tells us
According to Nationwide’s 2025 Survey, the concern around extreme weather is rising. Two-thirds of commercial property stakeholders say they’re worried about the impact of severe weather on their buildings. In response, many have taken steps such as increasing policy limits (48%), expanding coverage (46%), or conducting building assessments (33%).
These actions reflect growing risk awareness—but they also highlight a critical opportunity. While coverage enhancements are important, there’s still room to help clients take additional steps to reduce physical risk. Insurance agents play a key role in that effort, serving as trusted partners who can guide clients toward proactive protection and long-term resilience.
This survey data offers a clear takeaway: while risk awareness is high, many communities are missing the tools and resources needed to act. That’s where insurance professionals can step in—as trusted partners helping clients make informed decisions about risk mitigation and long-term protection.
Proof that stronger building codes work
Research from the Insurance Institute for Business & Home Safety (IBHS) and the Center for Risk and Insurance Research (CRIR) at the University of Alabama reinforces the value of resilient construction. A peer-reviewed study examining over 40,000 properties affected by Hurricane Sally found that homes built to IBHS FORTIFIED standards were significantly more resilient than those built to conventional codes:
- FORTIFIED Roof homes were 70% less likely to have an insurance claim, and when claims were filed, the average damage was 22% less severe.
- FORTIFIED Gold homes performed even better, with 76% fewer claims, 24% lower severity, and 67% lower total losses compared to traditional construction.
- The study estimated that if all affected homes had met the FORTIFIED Roof standard, total damage could have been reduced by more than $147 million—saving homeowners $42 million and insurers $105.6 million in losses.
- Notably, FORTIFIED designated homes outperformed homes built to similar codes by more than 50%, underscoring the value of the program’s third-party documentation and verification process. This includes required inspections at key construction stages to ensure resilient standards are properly implemented—not just planned.
These findings offer compelling evidence that stronger building standards not only reduce damage but also deliver measurable financial benefits to both homeowners and insurers.
A Nationwide commitment to resilience
Nationwide continues to support efforts to modernize building codes across the country. As a founding member of IBHS, we contribute to research and public policy efforts aimed at advancing safer construction practices. We also support programs like FEMA’s Building Resilient Infrastructure and Communities (BRIC) and offer innovative policy features like Better Roof Replacement®, helping homeowners rebuild stronger after storms.
For agents, these resources provide powerful proof points to lead client conversations. Showing how stronger building codes reduce risk—and backing it with credible research—can help clients make better decisions for the future.
Together, we can reduce losses, protect what matters most, and create communities that withstand tomorrow’s challenges.