As more and more buildings are being built or renovated to "green" standards, insurance issues naturally come up. The industry is calling this, "green insurance."
Actual construction costs should not be an issue with replacement cost coverage. Most property insurance policies (with RC) pay the cost of replacing the property with property of comparable material, quality and for the same purpose.
You obviously must buy enough insurance - review your limits of coverage.
There may be an issue if you have plant materials as part of your roof, for example. Most policies limit coverage for trees and plants - how does that impact plants that are a part of the building?
An issue may be the cost of certification to green standards. I know that developers pay fairly substantial sums to get green certification. A major reconstruction project after a fire or windstorm would probably require recertification. That may not be considered a part of the reconstruction.
Your best approach is to get clarification from your insurance company and agent on how your policy will apply. Easy before a loss. Hard after.
Actual construction costs should not be an issue with replacement cost coverage. Most property insurance policies (with RC) pay the cost of replacing the property with property of comparable material, quality and for the same purpose.
You obviously must buy enough insurance - review your limits of coverage.
There may be an issue if you have plant materials as part of your roof, for example. Most policies limit coverage for trees and plants - how does that impact plants that are a part of the building?
An issue may be the cost of certification to green standards. I know that developers pay fairly substantial sums to get green certification. A major reconstruction project after a fire or windstorm would probably require recertification. That may not be considered a part of the reconstruction.
Your best approach is to get clarification from your insurance company and agent on how your policy will apply. Easy before a loss. Hard after.
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