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HomeMy WebLinkAboutAGENDA REPORT 1997 0507 CC REG ITEM 10HTO: FROM: DATE: SUBJECT: BACKGROUND / ! / A I rroM (0. H . C[TY OF MOORPARK AGENDA REPORT The Honorable Mayor and Members of the City Council Claude Stewart, C.B.U. Building Official Jim MacDonald, C.B.O. Senior Building April 29, 1997 (CC Meeting, Building Code. Effectiveness Grading Schedule CALMRNLA I99 7 ACTION: In 1995 the Insurance Services Office along with the insurance industry began a national program by which ISO rates a jurisdiction's building code enforcement agency as to its effectiveness. The program is entitled "Building Code Effectiveness Grading Schedule" or BCEGS. The rating that a jurisdiction receives will be used for insurance underwriting purposes and will be one of the factors used in setting rates on homeowner and commercial building insurance policies. The insurance industry has had a similar rating program in place since 1916 for rating a jurisdiction's fire department. This rating subsequently affected fire insurance policies for both residential and commercial building owners. The Insurance Services Office, Inc. (ISO) is a nonprofit corporation that provides information about property /casualty insurance, including statistical information and actuarial analysis to insurance companies. Implementation of the BCEGS program began in California in 1997. The Building and Safety Division began reviewing its operations in late 1996 to insure that the City of Moorpark achieves the highest possible rating. We anticipate that ISO will rate the City of Moorpark within the next 12 months. The insurance industry and ISO have borne the implementation costs of the BCEGS program. Jurisdictions being graded will not he liable for any BCEGS related costs. DISCUSSION The main focus of BCEGS is to measure the resources and support available for building code enforcement. The BCEGS will assign each municipality a grade of 1 (best) to 10 (no recognized protection). The concept is that municipalities with effective codes that are well enforced should reduce the potential earthquake losses as a result of quality building code enforcement. The prospect of lessening catastrophe - related damage and ultimately lowering insurance costs provides an incentive for communities to rigorously enforce their building cedes. Some potential benefits of this program are: ♦ a reduction of property losses due to seismic activity ♦ improved building codes. building departments and building code enforcement ♦ better, more seismic resistant building construction ♦ reduced social and economic disruption resulling from a major seismic event � ' q In 1997 each building official in the State of California will receive a detailed questionnaire before being reviewed. Once the questionnaire is complete, Commercial Risk Services (CRS) will arrange for a field representative to meet with the building official. The building official and the field representative will review and verify the community's capabilities together. The review is expected to take two to four hours. CRS will also schedule a visit to a construction site. Once the review is complete it should take 3 months to receive the results. ISO will grade communities in the following four areas: 1. Background Information ♦ Natural hazards conunon to the City ol' Moorpark ♦ The number of building permits issued ♦ Building and Safety funding source and date of establishment ♦ The size, population of the city ♦ The fair market value of all buildings in the city 2. Code Administration ♦ The current edition of the model code ♦ Any amendments or modifications to the adopted code ♦ Zoning provisions designed to mitigate natural hazard loss ♦ Inspector and plan reviewer training, certifications and education incentives ♦ Building Official qualifications ♦ Contractor licensing and bonding requirements Public awareness programs and participation in code development activities ♦ Education of elected officials* 3. Building Plan Review ♦ Staffing levels, qualifications and performance evaluations ♦ The level and detail ol'plan review ♦ The type of buildings requiring plan review 4. Field Inspections ♦ Staffing levels, qualifications and performance evaluations ♦ Building inspection detail ♦ Final inspection and certificate of Occupancy requirements * Education options For all categories under BCEGS. 100 total points are available. Of the total points available, training will account for 13 of the 100 points available. Education of elected officials will account for .S of the potential 13 points in this category. To achievee the additional one -half point, each public official is required to have a minimum of 3 hours of education per year, Several options are available to obtain these education hours and the additional one -half point: Option A Building and Safety can oiler the City Council 2 -1' /z training seminars on building codes and building code enforcement. The seminars would include an overview of the. various construction related codes that the city has adopted and BCEGS1.WPll 4 W322 would also include state laws that affect local building departments. Option B Three hours of State Emergency Management System training. Option C Three hours of ride -along inspections with a Building Inspector. t_ 106 _O UAN I . Direct staff to implement any or all of the three education options outlined above and 2. Receive and file the repoil. .WW�� Grading Building-Code Effectiveness I NSWF'R,8 F() 91 f 8'I'mNs mi'mik 11)4-110% t,y%itit low building-codc 104 1('14 rmlfw(f 111114 (*fhi( 14#1 1111pit � I I �%\ M 1)('� 41, 1(k 77 ",MR Grading Building -Code Effectiveness ANSWERS TO YOUR QUESTIONS Insurance Services Office. Inc Q,wiss ISO Commercial Risk Services. Inc Insurance Services Office, Inc. (ISO) is a nonprofit corporation that provides information about property/casualty insurance, including statistical information, actuarial analyses, policy language, and related services. ISO's customers include more than 1,500 insurance companies, as well as agents and regulators ISO Commercial Risk Services, Inc. ((IRS) a wholly owned subsidiary of ISO, offers a broad range of risk- related information. ©Insurance Services Office, in(.. 1995 V1316 Contents Grading Building -Code Effectiveness: In Brief ..........................1 What? Why? When? And what do I do? ........................3 What determines a municipality's code - effectiveness grade? .......................9 How do building -code effectiveness grades affect insurance pricing? ...............17 What other underwriting information will be available to insurers? ................23 ()WJ W'7 Grading Building -Code Effectiveness: In Brief The Building Code Effectiveness Grading Schedule (BCEGS) assesses the building codes in effect in a particular community and how the community enforces its building codes, with special emphasis on mitigation of losses from natural hazards. The concept is simple: municipalities with effective codes that are well enforced should demonstrate better loss experience, and insurance rates can reflect that. The prospect of lessening catastrophe - related damage and ultimately lowering insurance costs provides an incentive for communities to enforce their building codes rigorously - especially as they relate to windstorm and earthquake damage. • The anticipated upshrn safer buildings, less damage and lower insured losses from catastrophes. • The BCEGS program will assign each municipality a BCEGS grade of 1 (best) to 10 (no recognized protection). ISO will develop advisory rating credits that apply to ranges of BCEGS grades (1 -3, 4-6, 7 -9, 10). Insurers will be provided the BCEGS grades, BCEGS advisory credits and related underwriting information. • BCEGS will be introduced countrywide over a five -year period. Implementation will be in rive phases, beginning in 1995 in those states with high exposure to wind (hurricane) hazards. • Insurers that currently receive ISO's Public Protection Classifications (PPCs), reflecting an assessment of municipalities' fire - suppression capabilities, will automatically; receive BCEGS information. PPC charges are adjusted to reflect the provision of BCEGS- related information. - s ., t, What? Why?, When?. And what do I do? What? Why? When? And what do I do! What is the Building Code Effectiveness Grading Schedule? Why is BCEGS needed? The Building Code Effectiveness Grading Schedule (BCEGS) assesses the building codes in effect in a particular community as well as how the community enforces its building codes. BCEGS particularly emphasizes building -code requirements designed to mitigate losses from natural hazards. BCEGS develops a relative Building Code Effectiveness Classification (or grade) for each community for insurance rating and underwriting purposes. BCEGS is similar in concept to ISO's Public Protection Classification (PPC) evaluations of municipal fire- suppression capabilities used by insurers for decades. The concept is simple: municipalities with effective codes that are well- enforced should demonstrate better loss experience, and insurance rates can reflect that. The prospect of lessening catastrophe - related damage and ultimately lowering insurance costs provides an incentive for communities to enforce their building codes rigorously - especially ,is they relate to windstorms and seismic damage. BCEGS will encourage the implementation and enforcement of effective building codes, resulting in safer buildings, less damage and lower insurer losses from catastrophes. Insured catastrophe losses of $17 billion made 1994 the second -worst catastrophe year on record. In 1992, catastrophe losses reached $23 billion, largely, because of Hurricane Andrew. Serious natural disasters have recently occurred with greater frequency, and high -risk areas are becoming more populous. More than half the U.S. population, some 135 million people, is now living near one of our nation's coasts - the most windstorm -prone areas. Windstorms - hurricanes, tornadoes and tropical storms - account for almost What? Why? When? And what do I do? 80% of the insurance industry's catastrophe losses since 1986. Studies of various catastrophes, including Hurricane Andrew, graphically demonstrate that effective building -code enforcement reduces loss in catastrophic events. According to Best's Review, experts estimate that Hurricane Andrew losses could have been reduced by 301% to 40% if building codes had been enforced. A study by Factory Mutual Insurance Group shows that damage to the majority of buildings inspected after Hurricane Andrew could have been reduced by up to 550N if building codes had been enforced. After Hurricane Andrew, photos of Homestead, Florida, showed homes on one side of a street completely destroyed, while homes on the other side were still standing. Later inspections determined that the destroyed structures were built well below building -code requirements. We can't control where people live. But we can encourage more effective enforcement of municipal building codes. BCEGS will provide that encouragement. Who developed BCEGS? Where did it come from? ISO's subsidiary, ISO Commercial Risk Services, Inc. (CRS), worked closely with the Insurance Institute for Property Loss Reduction (IIPLR) to develop BCEGS. In developing the program, CRS also tapped into the expertise of the three organizations that produce model building codes - the International Conference of Building Officials, the Southern Building Code Congress International and the Building Officials and Code Administrators International - as well as information from 1,500 building -code officials. CRS pilot- tested the. program in 150 communities in Florida, Georgia, North Carolina and South Carolina to further refine the grading criteria. 00 0 1101 5 What? Why? When? And what do I do, What are the benefits of BCEGS? BCEGS has the potential to: • improve building codes, building departments and code enforcement • lead to better, more catastrophe- resistant buildings • reduce property losses from catastrophes • reduce the economic and social disruption that results from catastrophes' serious and widespread destruction • improve the public perception of the insurance industry by displaying the industry's commitment to address the catastrophe peril. Can insurers actually expect this program to reduce losses, or is this really just a "politically correct" program for the industry? Insurers are confident that in the long term this program will reduce insured property losses due to natural hazards. Insurers are also confident that the program will reduce bodily injury and save lives. What are the marketplace implications of BCEGS? Insurers using the rating discounts for risks eligible for the program may have a competitive advantage over insurers not using the discounts. Insurers using the program can highlight that point in their marketing. Also, insurers offering the discounts may seize the opportunity to market their coverages in areas with significant new -home construction where many buildings will be eligible for the discounts Where, when and how will BCEGS be implemented? _ BCEGS will be introduced in all ISO jurisdictions over a five -year period. Full implementation is scheduled for January 1, 2000. The schedule calls What' WhN,? When? And what do l dw for earliest implementation in areas with the greatest natural- hazard potential. The first step in the implementation process in a particular state is ISO's filing and the insurance regulator's approval /acknowledgment of the Building Code Effectiveness Grading Schedule. Once that occurs, CRS representatives will begin grading individual municipalities in that state, with the goal being to grade all municipalities in a state within two years. As municipalities are graded, the grades will be released with updates to Public Protection Classifications, which reflect CRS' assessments of municipal fire- suppression capabilities Concurrent with the grading of the municipalities' building -code effectiveness, ISO will develop and file BCEGS advisory rating credits to be applied to loss costs for personal and commercial property coverages in each community. ISO will also file manual rules to be used with the credits. Once the filings are approved /acknowledged and become effective, insurers that have given ISO filing authorization can automatically apply the credits in anN municipality where grading has been Completed Q00Z013 What? Why? When? And what do l do, Here's the state -by -state schedule: Phase 1 - 1995 Florida North Carolina South Carolina Phase 5 - 1999 Iowa Minnesota Nebraska North Dakota South Dakota West Virginia Wisconsin Phase 2 - 1996 Alabama Delaware Georgia Maryland ,Massachusetts New Hampshire° New Jersc} Rhode Island I'exas Phase 3 - 1997 Arkansas California Connecticut Illinois Kentucky Maine Missouri :Montana Nevada New York Oregon Pennsylvania Fennessee. I Jtah Vermont Virginia Wyoming Independent Rating Bureau States Hawaii (1996) Idaho (199 7) Louisiana (1996) Mississippi (1996) Washington (" 199 -> Phase 4 - 1998 Alaska Arizona Colorado Indiana Kansas Michigan New Mexico Ohio Oklahoma Why is this program applicable only to the natural hazards of wind and earthquake? The program applies to all natural hazards. The hazards of wind and earthquake have been more clearly addressed in the model building codes, and experts maintain that if buildings are constructed according to requirements of the model building codes, losses from wind and earthquake will be mitigated. If adequate codes are properly enforced, losses from other perils also should be reduced. 000204 What determines a mu nicipality's code - effectiveness grade? �W0205 What determines a municipality's code - effectiveness grader What's a community's grade based on? What is the grading process? A community's grade is based on: Background data, including natural hazards c(�mmon to the area, number of inspection permits issued, number of inspections completed, building department's funding mechanism and date of establishment, size of the jurisdiction and population, and the fair market value of all buildings Administration of codes, including building - code edition in use, modification of the codes, zoning provisions to mitigate natural hazards, training of code enforcers, certification of code enforcers, incentives for outside education /certification, building officials' qualifications, contractor/builder licensing and bonding, public- awareness programs, and participation in code- development activities and the appeal process. Review of building plans, including staffing levels, qualifications, level of detail of plan review, performance evaluations, and review of plans for one- and two- family dwellings, multi - family cl.vellings and commercial buildings. Field inspections, including staffing levels, qualifications, level of detail of inspections, performance evaluations, final inspections and issuance of certificates of occupancy. CRS will distribute detailed questionnaires to all municipalities' building officials in a state. Upon completion of the questionnaire, CRS will arrange for it field representative to meet at a mutually convenient time at the community site with each municipality's building officials. The CRS representative and building officials wiU review and verify the communities' capabilities together. The CRS representative will seek clarification and obtain supporting documentation, as necessary. The 00OZOS in What determines a municipality's code - effectiveness grade? review usually takes from two to four hours. The CRS field representative also may visit construction sites with building officials. The CRS field representative will then tabulate the points "scored" on the various sections of the schedule and assign a grade from 1 (best) to 10 (no recognized protection I What are the grades that will be applied to a community? Communities will be graded on a scale of 1 to 10, with "1" representing full compliance with the model building code in effect in a state as well as maximum enforcement and staff expertise, and "10" representing no recognized protection. Will communities rated 1110" have any incentive to improve their rating? Any community with a grade other than "1" has these incentives to improve its grade: • the prospect of reduced property losses, reduced injuries and loss of life, and reduced economic and social disruption caused by catastrophes • the prospect of lower insurance rates on buildings constructed after the community improves its grade • pride and professionalism of the community building department to be the best it can be • good public policy. Does a city really have incentives to raise fees or taxes to improve code enforcement —other than just so the insurance industry can cut losses? The primary incentive for communities to commit resources to ensure proper code enforcement should be to reduce the risk of property loss, loss of life, and economic and social disruption that result from natural catastrophes. Communities with good OOOZO? 11 What determines a municipality's code-effectiveness grade% enforcement can expect commensurate reductions in property - insurance rates. The program provides for premium credits only - not surcharges or increases. BCEGS is a useful, objective evaluation tool to assess the resources and support available for building -code enforcement relating to natural - hazard mitigation. The BCEGS program was developed with significant input from the three model code groups plus responses to surveys sent to more than 7,500 building officials countrywide. With BCEGS, communities are measured against objective standards, highlighting where resources can be applied to improve performance and a communitYs grade in the future. Once a community is evaluated for building codes, and a grade is established, how often will the grade be subject to change? Hie plan is to regrade each community every five years. if CRS is notified of a change that could affect the grade before the five -year regrading, CRS \vill regrade the community sooner, as CRS' schedule permits. Will a community get only one grade, or will different grades apply to different types of properties? Some municipalities don't adopt or enforce codes for buildings with two or fewer families, but do enforce codes for buildings with three or more families or for commercial occupancies. For such municipalities, separate grades will apply. One- and two - family dwellings will be classified as a grade 10, while all other properties will receive the ommunity's grade. The insurance manual's rules will advise which grade to use for a particular risk. What happens when a community is graded? When it community is graded, the grade automatically applies to any building receiving a certificate of occupancy in the year the grading is effective or later years. Once a grade is assigned to 12 What determines a municipality's code - effectiveness grade? a building, based on the community grade in effect at the time the building is constructed, that grade will remain with that building - even if a community is subsequently regraded. What happens when a community is regraded? The new classification will apply to buildings receiving a certificate of occupancy in the year the new classification becomes effective and later years. It is conceivable that as a building department improves over time, a community could have more than one grade. The applicable grade for any building would depend on its certificate-of- occupancy date. To consider a specific example: what happens to buildings that were constructed in 1997 when a town was grade 5, and then again in 2002 when the town is regraded to a 2? The grade assigned to a building will be the grade in effect in the year the building receives a certificate of occupancy. The grade that applies to a building will not change as a result of a municipality's subsequent changes in code effectiveness that result in a different grade for the municipality. The new municipal grade will apply only to buildings constructed when the new municipal grade is effective. Thus, in this example, the buildings constructed from 1997 through 2001 would receive a grade of 5, and buildings constructed in 2002 or later would receive a grade of 2. How can a building department be best prepared for this grading? What resource materials should be available? Documentation should be available that would support questionnaire answers. For example: copies of employee code certifications, training records, the building -code agency's budget, number of inspections and plan reviews performed (by type - one- and two - family dwellings; multi - family 4 00209 12) What determines a municipality's code - effectiveness grade? residential, and commercial and industrial structures). In addition, records on the amount of time spent on public- awareness programs will help complete the grading. Are grades established relative to the codes and level of enforcement in place at that time? Or are grades established on an absolute scale, so that meeting certain criteria always results in the same grade? The grade system looks at one year's worth of documentation and effectively takes a snapshot in time. It considers the model code in effect at that time as well as the municipality's resources and enforcement level. These are dynamic elements. Thus, a community graded in 1995 could possibly be evaluated against a different code than a community graded in 2005. For example, in 2005, a community that retains its 1995 code rather than adopt a more stringent code prevailing in 2005 would receive a less favorable grade Was this schedule prepared for very large jurisdictions, unfairly penalizing some small cities? The schedule was written to assess the risk of property loss irrespective of a jurisdiction's size. A structure does not stand any different chance of survival in a small community than a large community when both share an equal commitment to code adoption and enforcement. How does BCEGS compare with ISO's Public Protection Classification system for grading communities' fire- suppression capabilities? BCFGS was modeled after the long - standing fire program. which assesses municipal fire departments and water supplies. The similarities include the grading scale of l to 10 - with 10 representing'no recognized protection - and a reliance on recognized standards as reference points for 00OZ10 1'l What determines a municipality's code - effectiveness grade? grading. The fire - protection grading system, which began in 1916, was an insurance- industry response to fire losses and has been a fundamental factor in developing insurance premiums ever since. The main difference is that changes to a community's fire department and water supply affect the potential risk to all structures in the community, while changes to a community's building department affect the potential risk only to structures built after the change. How long after grading occurs will the building department become aware of its grade? Usually within 3 months. Will there be education and publicity on BCEGS' importance? Yes. ISO and CRS are providing information throughout the country, including presentations to numerous professional groups and outreach to and through the business and professional press and general media.. How flexible is the process in recognizing effective local programs that may be unique and innovative? Is there a special provision in the grading schedule? Are innovative initiatives considered for extra credit? Or are they not considered at all? The BCEGS program is designed to be a performance - related program. That is, it represents the degree of the risk for property loss within a jurisdiction as a function of the community's commitment to building -code enforcement, with a major emphasis on mitigation of natural- hazard damage. Although BCEGS relies on recognized standards as the foundation for code adoption, BCEGS can recognize alternative methods of enforcing those codes. These alternative methods, if effective and equivalent to industry standards, will be recognized by the program. _ 15 What determines a municipality's code - effectiveness grade? Is there a cost associated with the grading process? All of the costs are borne by the insurers using the information delivered by the program. Municipalities and taxpayers won't incur any costs associated with this program. 'sjoo212 16 How do building -code effectiveness grades affect insurance 0 pricing? 17 `0(021.3 How do building -code effectiveness grades affect insurance pricing? How will insurance rates be affected by BCEGS? ISO has filed advisory rating programs, including rating credits for the Commercial Fire and Allied Lines, Businessowners, Homeowners and Dwelling lines of insurance. The credits apply to various ranges of BCEGS classifications (1-3,4-6,7-9, 10). Any building constructed in the year a community is graded or later will be eligible for the program. Grades of 9 and lower (down to 1) will receive a rating credit. A grade of 10 will receive no credit. Grades of 1 -3 will receive the highest credit. Grades of 4 -9 will receive intermediate credits. Will separate factors apply to personal and commercial risks? Yes. The building -code rating- credit factors are developed separately for each line of insurance. Will there be separate factors by territory? How are the credits developed? Yes. For each line, each territory will have its own rating- credit factor, based on loss information and other data specific to that territory. ISO staff gathered extensive information from wind - damage experts, loss - control engineers, storm - shutter manufacturers and installers, building officials and consultants. ISO staff also reviewed studies of Hurricane Andrew and other catastrophes. Based on this research, ISO actuaries estimate: • The percentage of all losses due to natural hazards M The percentage of natural- hazard losses to property not affected by building -code enforcement (trees, fences, non - inspected utility structures, etc ). �W214 How do building -code effectiveness grades affect insurance pricing? The percentage of natural hazard losses not miti- gated by building -code enforcement (building codes will not affect losses from minor storms, and building codes will have minimal impact on losses from the most extremely severe catastrophes). The percentage of natural - hazard losses that are mitigated by building -code enforcement. ISO actuaries then apply these percentages to varying intensity levels of natural hazards using nationally recognized measuring scales, such as the Saffir Simpson scale for hurricanes and the Richter scale for earthquakes. Finally, to calculate appropriate credits, ISO actuaries calculate the impact on loss costs (estimates of future claims losses), using modeling techniques and actuarial judgment. Will rates be increased for buildings in communities graded 8, 9, or 10, for example? No. No rate increase will be implemented with BCEGS. It is a credit -only program. Why do grading - schedule credits apply only to new buildings? Why not to existing buildings? The BCEGS program is intended to promote a long- term reduction in catastrophe damage in graded communities. In most cases, staff turnover, model - code revisions and updates, or a lack of record keeping makes it impossible to measure a building department's effectiveness retroactively. So BCEGS will apply only to buildings receiving a certificate of occupancy in the year a community is graded or later. But CRS will continue to gather and make available extensive underwriting information on existing buildings. Will the existing building stock be treated as grade 10? Existing buildings are not subject to the program. Loss costs for these buildings are not affected. Thr- program - and potential credits based on a municipality's grade - applies only to buildings receiving a certificate of occupancy in the year a 19 l 0GLi.S How do building -code effectiveness grades affect insurance pricing? community is graded or later - when code - enforcement standards are known. But individual existing properties can receive the best grade (class 1) and be eligible for associated credits if a registered design professional (architect or engineer) certifies that the structure was designed and built according to the natural- hazard provisions of a nationally recognized code. Is there any rating impact on the existing building stock? Will rates go up for the existing building stock to balance the credits for new buildings? No. The existing building stock is not affected. What happens when communities are regraded? When a community is first regraded, the new grade applies to buildings built in the year the new grade becomes effective or later. The previous grade continues to apply to buildings built from the effective date of the first grade up to the effective date of the regrading. If an individual building in a community has been built according to a nationally recognized code, could this property get a better BCEGS grade than the community in which it is located? N es, through an individual - building certification process. If a registered design professional inspects the building and certifies that it is designed and guilt to the natural- hazard provisions of a nationally recognized code, the building will receive the Highest possible grade. Can an entire community be eligible for Building Code Grade 1 through a certification by a qualified inspector, or are only individual buildings that meet the appropriate criteria eligible? The community's commitment to code cnforcement will be measured by CRS' grading process. An individual risk can be individually �. crtified by a registered design professional to rc(cive it grade 1. A whole community cannot alter 4lO021.b 20 How do building -code effectiveness grades affect insurance pricing? its grade except through a regrading of the entire community. How does individual -risk certification work? Individual properties, no matter when constructed, can be inspected by a registered design professional and, if certified to be in conformance with one of the nationally recognized building codes with respect to mitigation of natural hazards, will be given a grade of 1. If a building is certified to be in compliance with a nationally recognized code, when does the credit apply? Credits will only apply from the date of certification. What about this situation: an insured's building does not qualify for a credit, while the building next door, built by the same builder but only a year or two later, does qualify? How can that be explained? There is no way to retroactively determine the effectiveness of building -code enforcement that prevailed when the older building was constructed. But the older building's owner can receive a credit, if a design professional certifies that his building was constructed in accordance with the natural - hazard provisions of a nationally recognized model building code, How often, if ever, will the gradings change? Each community will be regraded every five years, and its grade may or may not change, depending upon what is found. Grades for existing buildings will not change as a result of the community regntding. 21 How do building -code effectiveness grades affect insurance pricing? Who makes the ultimate determination if an individual property qualifies for the individual -risk certification? Each insurer will make its own individual determination as to the conditions under which a property will qualify for individual -risk treatment. Does the year of construction ever change for a risk? If a risk undergoes a major renovation, requiring the issuance of a new certificate of occupancy or legal equivalent, the year of construction for that risk will change. i ()()OZ1b 22 What other underwriting information will be available to insurers? 219 23 What other underwriting information will be available to insurers? What type of underwriting information will be available to insurers about communities? CRS will make available underwriting reports including the following information: • size of municipality • population of municipality • fair market value of all buildings • natural hazards common to the area • number of building permits issued • number of inspections completed • funding mechanism for building department • history of building department, codes and enforcement. When will these reports become available? After the building -code grades are published in the Public Protection Classification manual. I OWZ ow 24