Today let’s look at some money saving possibilities if you go green with homeowners insurance.
It’s no secret that adding green upgrades to your home can be beneficial in a few ways. Though it can cost a bit for certain ones, they usually pay off as you hoped.
Any upgrades will need to meet the U.S. Green Building Council or LEED certification. Before making these changes, you’ll want to check your homeowners coverage to go green with homeowner’s insurance..
A typical homeowner’s policy may not cover the cost of replacing green upgrades. Since these are special, make sure your policy specifically covers their replacement. If not, you’ll have to pay out-of-pocket to replace those particular upgrades.
A green homeowner’s policy, on the other hand, will cover these costs. You can get either the actual cash value or the replacement costs, of rebuilding a certified green home. You may also be able to get coverage to upgrade a standard home to a green standard.
Some policies will even allow you to repair your home using green materials. These policies typically have a cap on covered costs. There may be a few exclusions like fees charged by inspectors for having your home certified or re-certified as green.
Another thing to do is check for coverage handling the cost of environmentally sensitive demolition and debris removal.
If you are planning to add solar panels or a wind turbine, it’s again important to check your insurance first. Some carriers are now offering homeowners coverage for these additions, but most have not caught on yet. Thankfully some are starting to see the value and allow policy holders to go green with homeowners insurance.
In some cases, the addition of solar panels or a wind turbine can significantly affect the cost of your insurance policy. If your current carrier doesn’t handle that coverage, your state insurance department can direct you.
If there’s an insurer authorized to offer the coverage in your state, the Dept. of Insurance will know about them.
Some people have even been able to create more energy than they can use. If you are considering selling any of that excess energy, be sure to check with your insurance carrier first. There may have specific insurance obligations to meet before setting up the transfer.
The terms and prices on green policies may differ from one carrier to another. I fact they probably do. Be sure to get several quotes and ask questions about any limitations.
Different companies have differing methods on how rebuilding costs are figured and differing requirements for green coverage.
That’s it for today. If you are of a mind to go green with homeowners insurance, MrInsurability is only a call or click away.