Homeowners May Get Insurance Discount for Green Homes

by bkrigbaum@solagroup.com


HARRISBURG, Pa. — April 29, 2010 /PRNewswire-USNewswire/
The Pennsylvania Insurance Department has approved Travelers
Insurance’s discounts on “green” homeowners’ products, Insurance Commissioner
Joel Ario said.


The policy discount is based on
having the U.S. Green Building Council’s Leadership in Energy and Environmental
Design, or LEED, building certification.


“The LEED certification is the
most widely recognized environmental building standard in our country,” said
Ario. “I am pleased to announce the approval of this type of insurance discount;
a first for homeowners in Pennsylvania.”


The Travelers green building
discount provides incentives for greater energy efficiency and air quality.
Since a LEED certification requires an extensive review of all building systems
to ensure efficient operation, the decision to upgrade a building often reflects
greater concern with issues that affect loss control.


Specifically, the Travelers Home
and Marine Insurance Company and TravCo Insurance Company will now offer:


— “Green Home” coverage (a new
endorsement with an additional rate) that will extend coverage to pay for
additional costs and expenses associated with green building alternatives,
personal property green alternatives, and green methods to dispose of covered

— A five percent “Green
Discount” if the residence has a LEED Certification.


These discounts are effective
June 20 for new policies and Aug. 26 for renewed policies. The coverage can
include an agreement to pay a certain percentage above normal replacement costs
to cover the additional costs of upgrading to green standards. Since the
coverage does vary, policyholders should carefully consider their potential


“The Insurance Department intends
to survey the major insurance companies headquartered in Pennsylvania to get a
fuller understanding of their strategies related to climate change issues,” Ario
said. “As sustainable buildings become more common, green insurance will become
more popular and some of its features might become a standard part of property


Source: Pennsylvania
Department of Insurance

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