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Green Construction – Insurance issues

with 2 comments

Insurance companies are bringing out “green” construction coverages.   CNA introduced a “EcoCare Property Upgrade Extension Endorsement”  to allow property owners to rebuild “green” after a loss.  And other carriers have done the same.  Here’s a link to an article on the topic.  Do you think “green” buildings are less likely to suffer losses? 

Here’s another perspective.

GBW Insurance 800-548-2329

Written by gbwinsurance

April 12, 2010 at 12:04 pm

2 Responses

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  1. I don’t know if green materials and construction are safer. Aren’t they using recycled materials? And what is the LEED program?

    Donald S.

    April 13, 2010 at 11:07 am

    • In the commissioning/decommissioning cycle, yes some of the materials in some “green” buildings are recycled. When we look at steel buildings, there isn’t much to be concerned about recycling the structural material. But when there are issues like using recycled cloth as insurlation, yes people are investigating that carefully.
      Leadership in Energy and Environmental Design (LEED) is an accreditation program of the US Green Building Council. In the confusing world of “what is really green design and building”, the USGBC is trying to achieve some standardization. One of the concerns for future liability is the lack of specificity as to what makes something “green”. If you design, build, and market a building as environmentally responsible, or green, are you creating an expectation in the purchaser’s mind? How do you prove your project actually was “state of the art” or “environmentally sound”? Clearly the insurance industry would like to see more standards.
      Here’s the website of an excellent commercial furniture dealer, Milton Terry Associates. They focus on “green” furniture, heavily post-consumer in construction and almost entirely recyclable when worn out.


      April 13, 2010 at 11:27 am

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