A Mississippi-Alabama Sea Grant Consortium-supported research project studied which levels of FORTIFIED building have been used in Mississippi and Alabama Gulf Coast communities and how the stronger building standards affect property values. The research team found that a FORTIFIED designation is most likely associated with a 2-4% increase in property value. The team also created a draft decision tool to help homeowners determine if an investment in FORTIFIED building would pay for itself over time.
FORTIFIED, an Insurance Institute for Business and Home Safety (IBHS) program, consists of specific construction practices that protect buildings from severe weather events. Benefits include reduced damages and insurance savings, in some cases.
Designations likely increase home value
The research team, led by Dan Petrolia, an agricultural economics professor at Mississippi State University, along with Seong Yun and Josh Maples of Mississippi State, Reid Cummings of the University of South Alabama, and former MSU graduate student Shea Ishee used data from Zillow and IBHS and looked at 30,286 home sales in Baldwin and Mobile counties in Alabama from 2011-2021, 2,908 of which were FORTIFIED. They found that homes with FORTIFIED designations had 2-4% higher sales values in the project areas of Baldwin and Mobile counties in Alabama.
FORTIFIED costs can be recouped over time
The study also found that homeowners are likely recoup the extra cost for FORTIFIED Roof and Gold certifications, but it may take a long time.
“If you’re in there for a short amount of time, you’re probably not going to recoup your investment,” Petrolia said.
Looking at a specific Gulf Shores home using best-case and worst-case scenarios, the team found that in the best case, the homeowner getting a FORTIFIED Roof designation will break even in about five years and will receive more of a benefit the longer they stay in the house.
In the worst-case scenario, the homeowner would have to stay in the home for 25 years before recouping the investment.
When it comes to FORTFIED Gold, the best-case scenario showed that the homeowner would break even in about five years, and benefits would grow over more years spent in the home. The worst-case scenario showed that it could take up to 15 years to recoup the cost, and savings would grow with additional years in the home.
In the study, costs associated with a FORTIFIED roof were $1,000 to $5,700 over the cost of a conventional roof. The FORTIFED Gold designation added about 1-3% to the construction cost of a home.
FORTIFIED Levels
There are three levels in the FORTIFIED program: Roof, Silver and Gold. The Roof and Gold were the most often-used levels in Alabama and Mississippi.
- FORTIFIED Roof is designed to keep roofs on and water out. It requires features, such as a sealed roof deck and impact-resistant shingles, among others.
- FORTIFIED Silver is an option for existing homes. It requires a FORTIFED roof and additional measures, such as gable bracing and anchored porches and carports, aimed at strengthening against storms.
- FORTIFIED Gold, the strongest designation, is for new construction and requires all the practices of FORTIFIED Roof and Silver, but adds additional features, such as a continuous load path and anchored chimneys.
Homeowners can opt to use these practices and undergo an evaluation from a third-party evaluator to receive their FORTIFIED designation. The designation needs to be evaluated and renewed every 5 years, and the research team found estimates ranging from $150-$600 for the evaluation.
Draft decision tool created
The team also developed a draft decision tool to help homeowners determine their return on investment for building to a FORTIFIED standard.
“There are three main things that benefits seem to hover around: whether FORTIFIED affects your property value, our work indicates that it probably increases it a bit; whether it impacts your insurance costs (my answer would be that it can, but it depends on the state you live in and who your insurer is); and if you fortify your house, you should fare better when a storm hits,” Petrolia said.
In the tool, users input their county in Misissippi or Alabama, estimated cost of FORTIFIED building, insurance quotes and more. Download the draft tool.