Economic effectiveness of implementing a statewide building code: The case of Florida

Hurricane Andrew revealed inadequate construction practices were utilized in the U.S. state of Florida for decades. In response, Florida adopted a new statewide code – the 2001 Florida Building Code (FBC) which became one of the strictest in the nation. This paper uses ten years of insured loss data to show that the FBC reduced windstorm losses by up to 72%, then used the research results to conduct a benefit-cost analysis (BCA). The FBC passes the BCA by a margin of 5 dollars in reduced loss to 1 dollar of added cost, with a payback period of approximately 10 years.