In the face of increasingly severe weather, the business community is voicing a strong demand for improved building standards to safeguard their properties. Following a year where 28 disasters each caused over $1 billion in damages, a new survey from Nationwide reveals that commercial insurance clients across the U.S. recognize the urgent need for more resilient construction practices.
Nationwide’s survey engaged a variety of commercial property stakeholders, including property owners, builders, and business operators. The findings underscore a widespread concern: existing building codes do not adequately address the climate risks many regions face, particularly in hurricane and wildfire-prone areas.
Key Insight from the Survey
- Urgency for Improved Codes: A substantial 84 percent of respondents nationally believe that building codes need enhancement to better handle climate challenges. This sentiment is even stronger in states frequently hit by hurricanes, where nearly two-thirds express worry over outdated regulations.
- Impact of Severe Weather: More than one-third of those surveyed have experienced property damage due to natural disasters within the past five years, with recovery often costing between $20,000 and $50,000 and lasting up to six months.
- Investment in Resilience: More than half of the respondents are willing to invest an average of $20,000 to boost their buildings’ resilience. This readiness to invest increases in areas more susceptible to hurricanes and wildfires.
The Business Case for Stronger Building Codes
Climate risk is reshaping the protection needs of businesses. Commercial property stakeholders need a collective approach involving enhanced insurance coverage, proactive risk management and robust building standards. Many business owners are already upgrading their properties beyond current codes, yet the push for broader regulatory changes continues.
As a founding member of the Insurance Institute for Business & Home Safety (IBHS), Nationwide champions the adoption and uniform enforcement of comprehensive statewide building codes. These codes are crucial for protecting properties, reducing damage, and mitigating the financial and human cost of disasters.
Advocacy for Enhanced Building Standards
The survey results reveal a strong consensus among the business community: 97 percent agree that improved building standards are essential for better protection against climate impacts. With severe weather becoming a constant threat, the call for stronger, enforceable building codes has never been more urgent.
For construction contractors and stakeholders in the building industry, this shift toward stricter standards represents a challenge and an opportunity. By aligning construction practices with the highest safety standards, businesses can not only safeguard their investments but also contribute to the broader goal of building more resilient communities.