What is the Building Code Effectiveness Grading Schedule?
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 for each community for insurance rating and underwriting purposes. BCEGS is similar in concept to ISO’s Public Protection Classification (PPCTM) evaluations of municipal fire-suppression capabilities used by insurers for decades. The concept is simple: municipalities with effective, well-enforced codes 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 windstorms and seismic damage. »back to top 2. Why is B
