The insurance industry are seeing green and that’s a good thing if you’re a eco-conscious homeowner looking to save money on your homeowners insurance coverage. Many insurers are now offering premium discounts of up to 10% to customers who invest in green technology when building or remodeling their homes.
The reasoning behind the discounts is simple enough. If you’re a green homeowner, studies have shown that you’re more likely to perform the types of routine maintenance that help you avoid accidents and damages that lead to policy claims. You’re also most likely among the more affluent, which means you’ll pay your premiums In short, if you’re green you’re a better risk and deserving of a reward in the form of a discount.
When shopping for green homeowners insurance policy understand that there are two basic types of products out there. The first is for a home that already meets all the insurance company’s standards for a green discount. The second is available to homeowners who are making repairs to a covered home or adding qualifying additions. In the second instance, you can qualify by agreeing to conform to LEEDS (Leadership in Environmental and Energy Design) standards when remodeling. That can include using more eco-friendly materials like sustainable bamboo when remodeling. State and federal agencies are encouraging insurers to promote the use of energy-efficient materials and Energy Star-rated appliances, so if you’re remodeling ask your agent which materials and products will qualify. Keep in mind that some upgrades to your home, like solar panels, will mean an additional premium cost, and some energy-efficient and sustainable materials flat out cost more. You need to weigh the advantages and long-term savings when considering whether it’s worth it to you.
Not discounts, but still under the green-friendly banner are homeowners policies that offer extended coverage if you generate your own solar, wind or geothermal energy. Should your system fail, the policy will pay for the cost of buying your power from another source until your system is restored. Some of these policies even take care of the permitting and inspections necessary to get your system back online.
The best way to find a green home insurance policy to visit the websites of various insurers to see what they offer and what discounts are available. Armed with that information, you can shop for competitive quotes online at einsurance.com to see which policy is best for you.