THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, October 30, 1996 TAG: 9610300416
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY CATHERINE KOZAK, STAFF WRITER
DATELINE: SOUTHERN SHORES LENGTH: 75 lines
North Carolina Insurance Commissioner Jim Long made a campaign stop Tuesday at the Blue Sky project to get his first look at what many believe will be the future of coastal construction.
He outlined a proposal that will encourage private insurance companies to continue to insure coastal homes, even in the wake of storms that this year devastated parts of the North Carolina coast.
Long, who is seeking a fourth term against Republican challenger Mike Causey, pledged to support the innovative construction program designed to strengthen residential buildings against hurricane-force winds.
``We've got a tough building code right now,'' Long said. ``But it doesn't address certain areas. We're looking at better, more effective ways of doing construction.''
Although state codes require structures to withstand winds up to 110 mph, roofs and windows are often unable to bear up as well to high gusts as other parts of a building. Blue Sky construction methods include reinforced tie-downs of roofs, wind-resistant windows and shutters and use of a powerful adhesive to seal studs to the dry wall.
Once the 4,200-square foot Blue Sky Model and Training Center is completed in December, Long said he plans to sponsor a tour of the facility for insurance providers. He said the state will offer incentives to insurance companies to develop lower rates for Blue Sky houses.
Cay Cross, Southern Shores town manager, said the adhesive - a low-expansion urethane foam - has never been used in single-family stick construction before. It has been ``tested to the hilt'' with rave reviews, she said, and will soon be distributed nationally, starting on the Outer Banks.
After strolling through the unfinished structure and a firehouse retro-fitted using Blue Sky construction techniques, Long elaborated on steps the state has taken to ensure protection of coastal homes.
The commissioner said the General Assembly has directed the North Carolina Department of Insurance and the North Carolina Joint Underwriting Association to develop proposals for a tax-exempt reserve fund to pay catastrophic wind losses to policies issued by the Beach Plan.
The Beach Plan, adopted in 1969, is a high-risk pool set up to protect barrier island residents who are unable to obtain insurance coverage through private insurers - similar to automobile insurance pools set up for high-risk drivers.
In a separate bill passed by the General Assembly, lawmakers also instructed the insurance pool to establish an incentive plan that would encourage insurance companies to write more voluntary policies for coastal residences.
Out of 216 insurance companies that write homeowners policies in North Carolina, only 33 companies voluntarily issue homeowners insurance in beach territory, according to the North Carolina Department of Insurance.
Insurance providers who depend heavily on the pool got walloped with a $150 million assessment after Hurricane Fran ripped through the state in September. The assessment was based on losses to the high-risk pool, and were apportioned according to each insurance company's share of the market statewide.
``The gist of it is, if you write more than your fair share in Dare County, you won't have to pay when the next storm hits,'' Long said. ``If you don't want to write down here, you're going to get hit on the back end of the assessment.''
Long said the insurance department has found that most post-1994 homes stand up ``very well'' in storms. Those built between 1987 and 1994 stand up ``pretty well,'' he said, and pre-1987 structures ``didn't do as well.''
Long said that with enough money, a house can be built that will withstand 200 mph winds. Storm surges are a different matter, he said. The only way to avoid such damage is to build up, or far away from the waterfront.
Hurricane Fran has so far resulted in $1.6 billion in insured losses and $6 billion in uninsured losses, Long said. ILLUSTRATION: [Color Photo]
DREW C. WILSON
The Virginian-Pilot
North Carolina Insurance Commissioner Jim Long, left, chats with
Southern Shores Mayor Kern Pitts at the Blue Sky house Tuesday. by CNB