Fortify Homes Program Reduces Homeowner Insurance Costs, Audit Finds
BATON ROUGE — A recent audit of Louisiana’s Fortify Homes Program reveals the initiative is successfully reducing homeowner insurance costs for participants. The program offers $10,000 grants to homeowners who install hurricane-resistant roofs.
According to the Louisiana Legislative Auditor, homeowners participating in the program have experienced a median reduction of 22 percent in their insurance rates. The audit, released Monday, reviewed the program’s effectiveness, highlighting significant savings for those who invested in fortified roofs.
Blue tarps cover a storm-damaged roof after Hurricane Ida.
Homeowners with fortified roofs saved an average of $1,250 on their annual insurance premiums, lowering their yearly bill from approximately $5,625 to $4,375, the report indicated. Most grants have benefited middle-income households, with very-low income households, those with home values under $90,000, underrepresented in the program.
The Fortify Homes Program has awarded over 1,800 roof grants since its inaugural round in October 2023. The program is currently in it’s third year.
A fortified roof, adhering to the standards set by the Insurance Institute for Business and Home Safety (IBHS), is constructed with superior materials and methods. These roofs stop leaks and can generally withstand winds up to 150 mph. This standard reduces the risk of storm damage and typically leads to lower homeowner insurance rates.
As of February 1, the IBHS had issued 5,413 fortified certificates to property owners in Louisiana, the auditor’s report stated. Many more homeowners have upgraded their roofs without grant money.
The state provides grants up to $10,000, and homeowners are responsible for any costs exceeding this amount. Homeowners may also need to cover some expenses upfront, as the state issues grant checks directly to roofing contractors after completion of the work.
The audit analyzed insurance rating data and surveyed homeowners who applied for the program, with 694 responses from 3,257 participants.
Taking into account the initial costs homeowners pay for their roof installation, the median total cost of a fortified roof upgrade was approximately $16,229, or $6,229 after the $10,000 grant. With annual insurance savings of $1,250, a 15-year lifespan of a fortified roof upgrade would allow it to pay for itself in under five years.
Approximately 80 percent of a fortified roof’s cost, or $12,981, is the baseline cost of replacing an existing roof to comply with current building codes. The remaining 20 percent, or $3,248, covers the additional cost for upgrading to fortified standards and for the evaluator to certify the roof.
The audit concludes “In South Louisiana, the benefits of retrofitting to the fortified roof standard generally exceed the costs.”
