An economic analysis of wind resistant construction

Reinforced construction and strengthened building codes have been demonstrated to reduce expected damage from hurricanes in a cost effective manner. We examine whether reinforced construction (e.g. anchor bolts, hurricane clips, directional nailing) can provide efficient mitigation of property damage from tornadoes, using a case study of homes damaged in the May 3 1999 Oklahoma City Tornado. We find that if a package of wind resistant construction measures that cost no more than $500 could reduce insured losses by 30%, wind resistant construction could have a positive net present value in the most tornado prone states. A 30% reduction in wind damage is in line with estimates of damage reduction for construction in hurricane winds. The expected property damage reduction falls off rapidly in less tornado prone states.