jar546
Forum Coordinator
One thing for sure that not many talk about is how insurance rates may vary within the same county or region based on the score the building department gets for that particular zip code. Here is some info:
The Insurance Services Office (ISO) is a leading source of information about risk. They supply data, analytics, and decision-support services for professionals in many fields, including insurance, finance, real estate, health services, government, and human resources. Their products and services help customers measure, manage, and reduce risk.
The Building Code Effectiveness Grading Schedule (BCEGS) assesses the building codes in effect in a particular community and how the community enforces its building codes, with special emphasis on mitigation of losses from natural hazards.
The concept is simple: municipalities with well-enforced, up-to-date codes should demonstrate better loss experience, and insurance rates can reflect that. The prospect of lessening catastrophe-related damage and ultimately lowering insurance costs provides an incentive for communities to enforce their building codes rigorously especially as they relate to windstorm damage.
The anticipated upshot: safer buildings, less damage, and lower insured losses from catastrophes.
The BCEGS program assigns each municipality a BCEGS grade of 1 (exemplary commitment to building-code enforcement) to 10. ISO develops advisory rating credits that apply to ranges of BCEGS classifications (1-3, 4-7, 8-9, 10). A grade of 98 is given if a community refuses to participate in BCEGS. ISO gives insurers BCEGS classifications, BCEGS advisory credits, and related underwriting information.
The Insurance Services Office (ISO) is a leading source of information about risk. They supply data, analytics, and decision-support services for professionals in many fields, including insurance, finance, real estate, health services, government, and human resources. Their products and services help customers measure, manage, and reduce risk.
The Building Code Effectiveness Grading Schedule (BCEGS) assesses the building codes in effect in a particular community and how the community enforces its building codes, with special emphasis on mitigation of losses from natural hazards.
The concept is simple: municipalities with well-enforced, up-to-date codes should demonstrate better loss experience, and insurance rates can reflect that. The prospect of lessening catastrophe-related damage and ultimately lowering insurance costs provides an incentive for communities to enforce their building codes rigorously especially as they relate to windstorm damage.
The anticipated upshot: safer buildings, less damage, and lower insured losses from catastrophes.
The BCEGS program assigns each municipality a BCEGS grade of 1 (exemplary commitment to building-code enforcement) to 10. ISO develops advisory rating credits that apply to ranges of BCEGS classifications (1-3, 4-7, 8-9, 10). A grade of 98 is given if a community refuses to participate in BCEGS. ISO gives insurers BCEGS classifications, BCEGS advisory credits, and related underwriting information.