Owning a Green Home Gets You Discounts on Insurance

Every time you turnaround there seems to be another incentive for purchasing a green built home. Of course, the government is trying to push green building and sustainable living by offering tax credits for those that purchase an eco-friendly home or make green renovations to their existing home. Now, insurance companies have followed suit by offering discounts on insurance for green built homes.

Currently, there are two types of green insurance policies for homeowners – one that covers building that already meet strict sustainablility and efficiency standards and one that offers the option to replace any losses with green products and materials.

You should check with your current homeowner’s insurance company to see if they offer discounts for green built homes. If they don’t, and you are living in an environment-friendly residence, then perhaps you should consider switching. Fireman’s Fund Insurance of Novato, Calif was one of the first companies to offer discounts on green homes. For homeowners of a LEED-certified residences, Fireman’s offers a 5% discount off regular annual premiums.

It’s also worth taking a closer look into the policy options that will replace damaged property with environmentally conscious materials. For example, if you one of your old kilowatt-hungry appliances breaks, your insurance company will replace it with Energy STAR devices and other recycled materials. This option tends to be slightly more expensive than your regular policy, an additional $25 or 2% of the annual premium, but it’s worth it.

Go ahead and take a moment to contact your insurance company to ask them about their different green insurance programs.