BUSINESS PROPERTY INSURANCE
Going Green Makes Environmental and Insurance Sense
Going green. Environmental consciousness. Reducing your carbon footprint. Breathable structures. These construction industry buzzwords are all about being aware of the impact of new construction on our environment.
Insurance carriers are learning about this trend and formulating coverages that benefit and reward both residential and commercial customers for using environmentally friendly practices. Here are a few examples:
- Discounts are available for homes and businesses that are LEED certified. Leadership in Energy and Environmental Design (LEED) was created by the U.S. Green Building Council and is the gold standard of certification in environmental circles.
- If you make green upgrades to your building, insurance carriers now provide an endorsement – not covered in traditional property insurance – that will cover replacement of those upgrades. The increased cost to construct as well as potentially re-engineer and re-certify may also be covered.
- Green roofing is of particular interest because it is constructed differently from roofs on traditional buildings. Coverage can be offered as part of a total limit or a separate limit.
- Other possible coverages that could be included are debris removal/recycling, business income coverage and air flushing.
Because the area is still relatively new, each carrier has its own definition of what the term “going green” means, and one may cover something another doesn’t. Let a professional agent research the green coverage that’s best for you.