The risk of damage from severe weather is prompting developers and builders to construct more resilient homes.

As a result, lenders and insurance companies are working to accurately value properties that incorporate resilient construction features.

Multifamily owners are investing millions of dollars to boost resiliency, but those investments do not necessarily appear in property valuations, insurance underwriting, or lending decisions.

The financial industry is creating new tools and methodologies to acknowledge the value of protecting properties and investments from extreme weather.

One financing firm, CPC Climate Capital, is evaluating financial resilience when projects are being capitalized or recapitalized, according to a report in Urban Land. 

The goal is to assess hazard risks as soon as possible and align resilience measures with planned improvements. The company is developing analytical tools to better evaluate the costs and benefits of incremental resilience upgrades.

Some developers are looking to FORTIFIED, a voluntary commercial and multifamily standard that goes beyond local codes. This standard addresses roof protection, building envelopes, structural continuity, and power readiness.

Homes built to this standard in coastal Alabama had 73% fewer insurance claims and 72% lower total losses during Hurricane Sally compared to traditionally built homes.