Green Building Insurance

According to "The Green Behind the Green," an article in the Spring 2007 issue of NAIOP's magazine Development, Fireman's Fund recently launched a new insurance product for green commercial buildings and also non-green buildings whose owners would like to get the advantages of green.

A LEED-certified building is eligible for premium discounts (lower risk factors). If the building is covered by the company's Green Building Replacement program, the insurance will pay for rebuilding to a green certification standard, including rebuilding with sustainable building components. For buildings that are not green certified but are covered by the company's Green Upgrade coverage, the insurance will pay for rebuilding with upgrades that are green, and if the building has suffered a total loss, the insurance will cover a green certifiable rebuild. In addition, Fireman's Fund will pay the costs of applying for green certification by the U.S. Green Building Council and/or the Green Building Initative's Green Globes program.

For those of us who advise owners and developers of commercial real estate, this innovative insurance program seems well worth discussing with our clients.

To read more about the Fireman's Fund Green Building Replacement, Green Upgrade and Commissioning coverages, click here.(Today's entry posted by Karen Carey of Womble Carlyle's construction and real estate development group.)