Real Estate Blog - Should There Be a Call For Action With Homeowner's Insurance...

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Should There Be a Call For Action With Homeowner's Insurance...

Regarding Sustainable homes? We have touched on this subject on Jeff Geoghan's post titled A Green Building Conversation... and I thought I would take a moment to go over this in a little more detail. It was actually Ginger and Roger Sala that brought it up.

I am sort of thinking out loud, so bear with me.

Sustainable and LEED Homes promote healthy environments and a lower maintenance home. I know I have run this topic for a couple of weeks now, but read through this and let me know your thoughts.

Most Sustainable homes use special products that reduce moisture intake. This makes them less likely to have mold/mildew problems. If you live in the South with High Humidity you know that this is a HUGE issue.
Most Sustainable homes have fire retardant insulation. So extensive that some insulation will allow you an hour to get out of the home before it catches fire. Usually the fire department would be there before then.
Most Sustainable homes use Concrete Exterior Walls or other Recycled Wood Product that does not rot. The home will have less maintenance.
A true Sustainable homes will have a metal or ceramic tile roof. Hard to get a water leak there. Not to mention no caulking on those annoying air vents. These roofs would also hold up to Hail, Wind, probably a pretty strong Tornado or Tropical Storm.
Most Sustainable homes will have a plumbing manifold. Those of you that have not seen this it is like an electrical panel with shut offs for Hot and Cold water at any given wet location in the house. Hot Water leak in the second bathroom upstairs? Just shut it off until you can get a plumber out there. You will still have cold water.
Also, most have no metal pipes to wear out from Hard Water.
Back to the concrete walls-Less termites one would think.Termites don't like concrete.
Sustainable homes have Great indoor air quality. Most have a Whole House HEPA Filter which removes 99.99% of all dust, allergens, toxins in the air.
LEED Homes generally have a wood or recycled floors and Low VOC Paints, both of which promote a healthier atmosphere.

I will stop there. I think that is enough and we get the point. Unfortunately I don't know that GREEN Homes have caught on in Texas enough for it to make a difference, but for those of you in other states...might be something to pursue.

It seems to me that going through these points, a Sustainable Homeis less likely to have a Homeowner's Insurance claims and it would be fair to reduce the cost of insurance. If I left off any key points, let me know. I would also love to know your thoughts on the whole issue.

Posted by Stephanie Edwards-Musa, Realtor ® Spring/Woodlands, TX Real Estate on 06/19/2007 09:29 PM

Comments (14)

leed homes, green homes, sustainable homes, healthy living, homeowners insurance, jeff geoghan, ginger and roger sala

Originally posted at: Realtor ®-The Woodlands Real Estate : Should There Be a Call For Action With Homeowner's Insurance...

14 Comments on Should There Be a Call For Action With Homeowner's Insurance...

JUN

2007

Steph you are very informative on this subject. Thank you for all the great info. Ithink you are right on as far as home owners. It should be lower for things like that. They already give breaks for smoke detectors and security systems.

I started bookmarking your stuff so I can learn more....so much info...getting info overload right about now...haha. Thanks!

Thanks Jeff, I agree about the lower rate. If they give a discount for a security system, why not LEED?

Hey Sally, am I going overboard? Should I take a break for a few days? Maybe I will post other stuff for a week or so.

You left out the biggie....having a green home will cost you less money in utilities. It will cost you less money in health care, because it will be a healthier environment and you'll get sick less. -Charles

1. Insurance companies like historical data. Maybe they will learn some things from other cities and employ those ideas here

2. Aren't green homes a little more expensive in the short run? Then the replacement value is higher, then the premium is higher

Great information, I like where you are going with this!

JUN

2007

No! You just keep going...it's me trying to take in all I'm reading...so I'm bookmarking to read it more later.....you just keep doing what you're doing!

Steph~

Thanks for picking up the conversation and for sharing this information on sustainable properties in terms of insurance. What you say makes a lot of sense to me. And like Sally, I've bookmarked this post ...

You know, I think this is very interesting. It does seem that the lower potential for claims would be cause to reduce the policy premiums, doesn't it? But does the increased replacement cost of these homes offset that reduced likelihood of a claim? To be honest, I don't know quite enough about it to say too much, but I am just thinking "out loud."

We need to hear from some of our insurance contacts - what are they hearing from their underwriters on this subject? Are discounts in the works? Take a moment to email your insurance contacts to ask them...

Hi Jaqulyn- At first I had health in there as well, but decided to leave that one for another post. I didn't think that the insurance companies (homeowner's) would care about that or utilities. I will post about the health insurance soon. :) Thanks for the input. Looks like we think along the same lines.

Tom, I was waiting for someone to mention that one! Actually it was your number 2. Cost of replacement. My insurance agent thinks it should become a niche thing. There are already discounts in place for some of these points. Along the Gulf Coast where companies do not cover wind damage...Hmmm.

Thanks Ana, Stay tuned because I have some amazing information coming your way.

Sally, I'll keep on keepin' on!

JaneAnne, My insurance agent says he would fight for it. Especially along the Gulf coast areas. I am going to speak with the LEED builder I know about a few things that might knock the socks off many of the misconceptions of GREEN built homes. Can't wait.

Hi Christina, I am thinking yes, it would cost more to replace but that doesn't mean that there can not be some sort of discount in place. Like when if you have an alarm system you get a 15% discount in Texas. For instance, if you have certain roofing or exterior walls there could be an additional discount. If a roof can withstand 150 mile an hour wind...the likelihood of it being replaced any time soon is pretty close to nil. I am just thinking out loud too, but I sold the point to my insurance agent. :)

Hi Jeff, I spoke to mine today and actually he said they are talking about doing a discount for ICF homes. He said that there are discounts in place for certain roofs but we have an EXCELLENT POINT for Gulf Coast Counties. He says YES. fight for it! Yeah! He suggested that insurance companies waive the wind policy for sustainable homes.

JUN

2007

I wonder how the Gulf Coast insurance industry has changed post-Katrina? More restrictive? Less?

Hi Jeff, if a home is near the coast they dropped wind coverage. Much like they did in Florida a few years back. Actually, there are very few companies that will write policies at all right now. I was with a major National company and my rates went up, WAY up. Needless to say, I dropped them. Definitely more restrictive. Oh, reminds me. My son was born the night Rita hit Houston. Awww. :) Just thought I would share.

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