There are two types of green insurance policies for homeowners.
One covers buildings that already meet stringent efficiency and sustainability standards. The other offers the option to replace any losses incurred on the property with more environmentally sensitive materials.
Fireman’s Fund Insurance Co. of Novato, Calif., was one of the first companies to introduce homeowners policies that feed into consumer desire to make homes more energy-efficient and environmentally sustainable. For people who already own LEED-certified homes, Fireman’s offers a 5-percent discount off regular annual insurance premiums, saving homeowners around $100 per year.
For people who don’t own green-certified properties, several insurers are introducing an option that allows homeowners to replace any property losses with more eco-friendly options. Farmers Insurance of Los Angeles recently introduced an option it calls “Eco-Rebuild” that is available as an addition — or endorsement in insurance lingo — to a regular homeowner’s policy for $25 or 2 percent of the annual premium. In the event of a loss, the Eco-Rebuild endorsement means Farmers will pay extra to replace your old kilowatt-hungry appliances with Energy-Star devices and recycle debris, rather than send destroyed materials straight to a landfill.
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