Florida’s Long-sought Unified Building Code Signed into Law
Representatives from industry and government including engineers, contractors, architects, building and fire officials, people with disabilities, building owners, insurance companies and product manufacturers worked together to transform Florida’s old building code—which in reality was many local codes administered, created and amended by more than 400 jurisdictions and state agencies—into one statewide code unifying building, plumbing, mechanical, energy and gas codes into one document. It also standardizes interpretations of the regulations. The new code was designed to increase the safety, affordability and accountability of the state’s building community.

The need for a statewide, unified code came to light after Hurricane Andrew struck south Florida in 1992, leaving a path of destruction. The Building Codes Study Commission, established in 1996 by then-governor Lawton Chiles, spent 16 months assessing whether codes needed to be more stringent or better enforced. The group determined the existing system was confusing and led to compliance failures. Commission members recommended a statewide code with stronger enforcement in high wind zone areas.

OPTIONS

Florida’s beaches have attracted 14 million people to the state. The 825 miles of sandy coastline fronting the Atlantic Ocean, the Gulf of Mexico and the Straits of Florida contain 75 percent of Florida’s population. In order to protect the citizens living in this high wind zone, homes built along the coast’s 34 Florida counties will now be required to meet the window protection standards of ASCE 7-98 (developed by the American Society of Civil Engineers) wherever wind speeds exceed 120 miles per hour.

Builders will have the option to engineer their homes to withstand internal pressures produced by such winds or protect the openings. In the Florida panhandle, these wind protection standards now will apply along the coast and up to one mile inland. Only in south Florida’s Dade and Broward counties will all new homes continue to be subject to existing window protection standards (enacted locally since Hurricane Andrew) that mandate protected openings.
Structures built within the coastal zones must be able to withstand internal pressures that occur when a window or door breaks during a storm as well as external wind pressures. Buildings that cannot withstand the internal pressure are more likely to be destroyed during a hurricane, which makes them dangerous to anyone seeking shelter inside.

The construction industry has developed two strategies to reduce the damage associated with high winds. The first solution is to increase the strength of the underlying skeleton of the building to keep the roof from separating from the walls. An obvious problem with this strategy is that the interior of the building will be saturated with wind-blown water and the contents of the structure will be destroyed or removed from the building as the wind roars through the structure.
The second strategy is to protect the envelope of the house from intrusion from wind or rain. The two primary methods of protecting the house are impact-resistant glass and hurricane shutters.

Impact-resistant glass systems are available as complete units, including the frame, and they can be installed as a replacement for conventional windows. These windows are made of a clear polymer film, sandwiched between two glass units and have greater strength than glass alone.

The storm shutters come in two basic types: Permanently attached and Removable. Storm panels are removable high-wind protection formed from aluminum or steel that are designed for quick and easy installation. These lightweight panels provide storm and security protection and are fastened directly to the building or they can be installed in a track for maximum storm protection.

Accordion storm shutters are permanently attached, very strong and durable. The blades of the shutter move horizontally between an upper and lower track; interlocking aluminum blades make up the protective wall of the shutter. The accordion shutter glides along on tracks and a wheel assembly, which provides easy free gliding movements.

Roll-up shutters have PVC or aluminum slats, which roll up into a housing that is concealed in the roofline of the home. The slats ride along an aluminum track permanently attached to the structure and provide the most convenient form of shutter protection. Most roll up shutters can be operated with a flip of a switch or mechanically with a hand crank.

Colonial and Bahama style shutters are permanently attached with hinges and are simply lowered into place and fastened to the building.

COSTS

In addition to the protection of property, the building commission was concerned with the increased cost associated with a stronger building code. The commission and legislators acknowledge that the new code will increase commercial and residential construction costs. The bill mandated reductions or credits in residential property insurance rates for those who carry out and put into service requirements aimed at lessening windstorm damage.

The affordability factor of the new code required the insurance industry to provide “reasonable” discounts, credits or other rate differentials for fixtures or construction techniques that reduce windstorm losses. Currently, homeowners’ rate filings must include discounts for shutters or other fixtures. The new legislation expanded the list of items eligible for insurance discounts to include construction techniques that enhance roof strength; roof covering performance; roof-to-wall strength; wall-to-floor foundation strength; opening protection; window, door, and skylight strength; or other fixtures or techniques which meet the requirements of the Florida Building Code.

Frank Storms, president of IHPA, said, “The Unified Florida building code is not perfect, but it is a very large step forward in protecting the citizens of Florida against the next big hurricane.”

Florida Responds to Delay Concerns

The new Florida Building Code will take effect March 1, 2002, a delay of 60 days from the originally proposed January 1 date. The delay caused some concerns in the hurricane protection industry because of heavy lobbying by some trade groups signaling how politicized the new code had become.

In response to many of these concerns, Steven Seibert, secretary of the Florida Department of Community Affairs, the state agency that oversees the new code, said in a letter that the delay “strikes a good balance” among those involved.
“As you know,” Seibert writes, “there has been much debate recently over whether or not to delay the implementation of the code. While some wanted it delayed for up to six months and some wanted it implemented immediately, the bill crafted by the Legislature and signed by Governor Bush strikes a good balance. It delays the mandatory implementation for 60 days, but allows those who are prepared to use the new code to do so beginning January 1, 2002. This will give us time to iron out any wrinkles in the code without significantly delaying this important advance in building safety.”

September 11 Effects Still Ahead for Insurance Companies, Businesses
After Hurricane Andrew, the insurance industry paid out over $15 billion in claims and eight insurance companies went out of business. In comparison, the effects of the World Trade Center attack will be much more expensive and will change the way policies will be bought and sold.

In recent times, cost was the largest issue facing a business purchasing insurance in Florida. In the very near future availability of a carrier to insure the risk and the stability of the carrier will become issues.

The claim estimates continue to spiral upward in the World Trade Center disaster and the effects of the reinsurance market, which already was hardening, are going to be felt around the world. If Hurricane Andrew, a peril that the insurance industry actuarially underwrites, could remove eight insurance companies from the marketplace, imagine the effects of a $50 billion claim that no one had anticipated.
In addition to the terrorist attack not being underwritten, the occurrence is what is known as a clash event—several lines of coverage being impacted by a single event. The workers’ compensation claims already are estimated at between $3 billion and $5 billion, the cost for aviation losses are estimated at over $1 billion and when the attorneys get though with the liability claims, the liability portion is expect to exceed $8 billion.

So what does all of this have to do with my insurance premiums in Florida?
Every insurance carrier in the state of Florida purchases reinsurance. At present, there are 30 large reinsurance carriers in the international market. How many will be left after the claims are tallied is pure speculation. How many will risk doing business in Florida with its exposure to hurricanes remains to be seen. But an increase in the cost of your insurance premiums could be as high as 50 percent. Although price increases will impact your short-term profitability, stability of the insurance carrier and proper application of coverages—particularly business income, extra expense and employee dishonesty—should be your focus this year.
Currently most general liability insurance policies are written on a occurrence basis. The carriers take your money today and will defend future claims. What if the carriers are not in business tomorrow? Most product liability claims arise three to seven years after the product is manufactured. In the event your company is drawn into a lawsuit, the ability to defend and indemnify is of critical importance to the long-term survival of your company. In 2002, the questions that need to be asked are not how much is the policy, but is the carrier going to remain solvent? Does it have reinsurance? Is my carrier part of a guarantee fund?

This report was presented by Don Leggett, IHPA insurance coordinator, at the association’s meeting held October 24, 2001

Why Join the IHPA?

• Political Representation: IHPA is the only association dedicated strictly to the issues and building codes that impact the storm protection industry that will represent you. The association will keep you informed of any issues facing your business and represent you on both the international, state and local levels before the issues become problems.
• Worker’s Compensation: IHPA has united with Southeast Personnel Leasing, Jefferson Pilot, First Floridian, Sun Bank and other successful companies to offer discounted programs or special incentives to IHPA members.
• Employee Leasing: Southeast Personnel Leasing has offered to reduce your workers’ compensation by 20 percent, and it offers two health insurance plans. The first plan offered by Meridian Benefits is a PPO that offers a flat rate of $176 per employee anywhere in the state. The second plan is Aetna HMO. And if you do not like any of their health care options, you may keep your own plan.
• Retirement: Safeco is offering a 401(k) program that includes an employee five-year vesting retirement program for $975. Money may get you employees, vesting will keep your employees.
• World Wide Employee Help Wanted Posting: Free
• Advertising: Free Web site listing and referrals from the IHPA Web site (www.inthpa.com).
• Banking Center: Sun Bank is offering IHPA members a special discounted merchant plan (Visa, MasterCard) that includes lower merchant fees, a low monthly fee and free enrollment for the first month.
• Printing: A 10 percent discount on printing is offered by Advanced Digital Copies, Inc.
• Technology: A 10 percent discount on Web site design •