Government Response to VOBB
and Insurance
The Times Picayune newspaper of New Orleans had a very informative article about VOBB quality construction after editor Renee Peck visited a VOBB project in-progress. She went on-site and kicked the walls, talked to the workers and also talked to the owners. In the article, it was stated the home was a "fortress" . See the full article: 
http://www.nola.com/archives/t-p/index.ssf?/base/living-0/1177135030315090.xml&coll=1
Likewise, The Builder's Journal magazine had a very, very detailed review by April Goodyear, publisher and the writer, Katie Kief Smith. The question asked to April was, "Would you live in a concrete block home?". After her interviews of the owners, inspection of several VOBB projects and swinging of a sledgehammer at the Louisiana Technical College to test the strength of VOBB, her response was "Who wouldn't?"
As such, we believe that a home built as a "fortress" will have much less of a chance to be destroyed by fire, flood, hurricane or tornado. Therefore, we believe that the cost of property insurance for such a "fortress" should fully reflect the quality construction. We are inviting government officials and insurance companies to come and inspect the quality of VOBB construction. It is our opinion, that the VOBB construction (six-inch concrete block with 1/2-inch rebar in every other cell in BOTH the exterior and 90% of interior walls) should be entitled to at least a 50% reduction in the insurance premium (compared to standard stick-built construction).
We are very pleased and appreciate the work by Representaive Tim Burns in authoring HR 170. http://www.vobb.com/government/Louisiana-House-Representatives-HR-170.pdf
"To urge and request the Louisiana Citizens Property Insurance Corporation to grant discounts based upon new developments in building technology." Many thanks to Rep Tim Burns: |
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Some other responses we have received from government officials are as follows:
Louisiana:
Governor Blanco Kathleen Babineaux Blanco - Oct. 2006
http://www.vobb.com/government/LA-Governor-Blanco-2006-Feb-04.pdf
Lieutenant Governor Landrieu Mitch Landrieu - Feb. 2007
http://www.vobb.com/government/LA-Lieutenant-Governor-2007-Feb-27.PDF
Governor Foster M.J. "Mike" Foster, Jr. - Nov. 2002
http://www.vobb.com/government/LA-Governor-Foster-2002-Nov-18.pdf
Mississippi:
Governor Barbour Haley Barbour - Feb. 2007
http://www.vobb.com/government/MS-Governor-2007-Feb-14.pdf
Alabama:
Governor Riley Bob Riley - Oct. 2005
http://www.vobb.com/government/AL-Governor-Riley-2005-Oct-04.pdf
Florida:
Lieutenant Governor Jennings Toni Jennings - Dec. 2004http://www.vobb.com/government/FL-Lt-Governor-Jennings-2004-Dec-13.pdf
Virginia:
Governor Warner Mark R. Warner - Oct. 2003
http://www.vobb.com/government/VA-Dept-Housing-2003-Oct-9.pdf
North Carolina:
Governor Easley Michael F. Easley - Oct. 2003
http://www.vobb.com/government/NC-Governor-Easley-2003-Oct-13.pdf
We believe the solution to reducing the root cause of insurance claims, is to encourage home owners to build quality homes. The current method of just building to minimum building code standards, will continue to result in huge billion-dollar losses which will continue to force the insurance companies to raise insurance premiums or to terminate insurance coverage. As such, the rational method would be to have the home owners pay insurance cost that reflects the insurance risk, one-size does not fit all. Therefore, people who spend money to build a quality home, should not be forced to subsidize the people who build just to meet the minimum building code standards.
There are two parts to the insurance companies making a profit: One, is revenue; and two, is cost. The insurance companies will make a profit or they will NOT continue to provide insurance coverage. As such, they will either raise the rates or the cost (i.e. the insurance claims) will be reduced or eliminated. Building a home using six-inch thick concrete block in both the exterior and the interior walls vs. using stick will significantly reduce, if not eliminate, many of the large insurance claims due to property damage.
If the insurance companies do not earn a profit, then the insurance companies will leave as follows:
http://www.insurancejournal.com/news/southeast
/2007/02/16/77025.htm
May, 2007
http://www.usatoday.com/money/industries/insurance/2007-05-11-allstate-california_N.htm?csp=34
MOBILE, Ala. - As Labor Day tourists take an end-of-summer beach trip, owners of thousands of condominiums that line the Alabama Gulf Coast say they're getting burned by soaring insurance premiums.
"We actually have some documented 1,000 percent increases. Most are in the 300 to 400 percent range," said longtime insurance dealer and former Foley Mayor Tim Russell."
http://www.theadvertiser.com/apps/pbcs.dll/article?AID=2007709020322
http://www.vobb.com/News-articles/Advertiser-2007-Sep-AL-rate-hikes-1.PDF
