A Stormy Insurance Forecast for Coastal Homeowners

Some states are imposing stronger building codes, which could mean less damage and a better insurance scenario. In Florida, for example, the state acts as insurer of last resort for most coastal-area homeowners and has imposed strict conditions on new construction. The state's code calls for homes to be designed to withstand up to 110-mph winds, as opposed to the 90 mph that is typical in most other US regions.

Stricter codes mean more expensive houses, according to Jack Glenn, technical services director for the Florida Home Builders Association. He says the first round of code improvements raised prices five to seven percent in affected areas, and further revisions could add another five to seven percent. Higher costs pay for added roof bracing, impact-resistant windows and stronger garage doors and tracks, among other upgrades.

Consumers building – or rebuilding – to these higher standards may wince at the added cost. But understand that any current restrictions are only likely to get stronger, as officials continue to review past storms and future predictions.

"We've got a code that goes into effect in December," Glenn says, "and we're already working on the next edition."