Fortified roofs meet a standard developed by the Insurance Institute for Business & Home Safety, an industry nonprofit that serves as a leader in safety research. Some local governments have adopted building codes based on that standard, and Alabama’s program uses the institute’s qualification.

While state leaders say they’re still collecting data on insurance premiums, some industry leaders say the program is clearly working.

“There is sufficient resilience now in Alabama that the insurance market is far healthier than the insurance market in neighboring states,” said Michael Newman, general counsel with the institute.

‘Serious about resiliency’

Since Alabama issued its first grant in 2016, the state has doled out more than $70 million to cover roof projects on almost 7,100 homes. Residents are entitled to up to $10,000 per project, issued on a first-come, first-served basis. State officials award the funding directly to contractors who bid on the work.

The larger success story, state leaders say, is that more than 40,000 homeowners have installed a Fortified roof without state funding. The change has come as Alabama’s coastal counties have updated their building codes to require such roofs on new construction.

“The builders in Alabama, once they learn how to do the Fortified thing, they really like it,” said Lars Powell, executive director of the Alabama Center for Insurance Information and Research at the University of Alabama. “The Fortified construction movement will be remembered as a very important thing that allowed people to continue to live on the coast without being super-wealthy.”

Powell’s research has found that Fortified homes sell for 7% more on average, and owners are far more likely to secure insurance coverage from major carriers. Alabama also mandates that insurers provide discounts of 20% to 60% on wind coverage for Fortified homes, depending on the level of the upgrades.

Meanwhile, other states have seen insurance companies leave the market, drop high-risk customers or raise premiums drastically. Experts note climate change is causing more frequent and severe disasters, forcing insurers to adjust as they pay out more and more for claims.

Louisiana’s insurance market has been particularly hard hit, following devastating hurricane seasons in 2020 and 2021. In 2022, the state launched the Louisiana Fortify Homes Program, modeled on Alabama’s, that also offers $10,000 grants.

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