Green Homes Can Save You More Than Energy

By: Edward L. Blais, JD, CIC

Every year on Earth Day, many take to their neighborhood parks or back yards to clean up trash, rake away debris and freshen up mulch. While “going green” for your neighborhood is an excellent way to show your eco-friendliness, applying the same practices to your home can help the environment, and could also save you money on your home insurance.

In order for a home to receive insurance discounts for energy efficiency, it must comply with the standards of either Green Globe or Leadership in Energy & Environment Design (LEED). Most insurers use LEED standards to define green certification, and LEED ratings range from certified to silver, gold and platinum. Homes are rated on energy-efficiency, water efficiency, indoor air quality, environmentally sensitive site development, recycled and reclaimed building materials and other sustainable features.

Due to the increasing number of federal and state incentives available to build green homes, more insurers have been offering green home insurance coverage options. For example, Travelers insurance offers up to five percent savings on premiums to homeowners already certified by the LEED rating system. Additionally, for homeowners repairing, replacing or rebuilding with green materials after a loss, some insurance carriers reimburse you for using sustainable materials such as bamboo, energy-efficient appliances and paints made from zero volatile organic compound (VOC).

Unfortunately, not all states offer insurance discounts for green-certified homes, so be sure to check with your independent insurance agent to see if you qualify for either an insurance discount, or reimbursement for rebuilding with sustainable materials. For more information on green-certified insurance discounts or reimbursements, please contact Blais Insurance at 401-725-0070.