How to Spot a Green Home, and Why You Should

How to Spot a Green Home, and Why You Should

Regardless of whether you feel morally inclined to support environmental sustainability, you should consider going green for your next home purchase. You might pay a bit more upfront, but a green home can generate savings for years on utility bills and home insurance premiums.  

So how do you pick a green-friendly home from the rest? Here's a list of characteristics to look for:

LEED certification

Leadership in Energy and Environmental Design certification by the U.S. Green Building Council represents the top authority for green building. Both new and renovated buildings can qualify for LEED certification. It might be difficult to spot an LEED home from the street, but owners likely will let you know if their homes are certified. 

As for the savings, LEED homes typically use less water and electricity, which means you'll pay substantially less for those services, and they also can provide numerous discounts on homeowners insurance rates. For one, these homes are typically new; in the home insurance world, being new means they were constructed fewer than 10 years ago. New homes in general can qualify for a premium discount of up to 20%. New LEED homes also can qualify for other savings because they have stronger roofs and better electric, plumbing, heating, and cooling systems. Read on for more about why these features matter.

Aluminum or steel roofs

Even if the houses you're considering aren't LEED certified, they can have green characteristics that could mean lower premiums. One such characteristic is a coated metal roof. Aluminum and steel roofs keep energy and air in and wind and water damage out. 

It matters, because 95% of wind- and water-related insurance losses involve roofs, according to the Insurance Information Institute (III). Having a more durable roof, in addition to keeping you safer, means you'll have a lower risk of filing a claim, which could lower your cost of insurance.

The HVAC system

Heating and cooling systems can be temperamental, particularly older ones. Outdated HVAC systems are the second leading cause of house fires in the U.S. (after cooking mishaps), according to the U.S. Fire Administration. The average home insurance claim is more than $33,000, according to the III. When considering a home purchase, ask about the age and state of the house's heating and air conditioning. Because they're less likely to fail, updated HVAC systems can mean savings on monthly home insurance premiums.

But HVAC systems are hardly the only factor in fires. Problems with electrical distribution equipment cause about 19,000 to 25,000 fires a year, according to the National Fire Prevention Association.  Some signs of an old or outdated system include fuse boxes (instead of circuit breakers), ungrounded power outlets, and old wiring. Ask about the age of the electrical system of the house before you fall in love with it. In addition, keep your eyes peeled when you're touring the house for such positive features as motion-sensitive lights or high-efficiency bulbs – both are signs of an updated, safer, and more green-friendly system that could result in lower home insurance costs.

The bathroom

It's not easy to determine if a house's plumbing has been recently updated, but that shouldn't stop you from asking. Water causes a quarter of all home insurance damage claims in the U.S. Outdated plumbing is the cause of 90% of those claims. Newer low-flow toilets conserve water and, because they have a lower chance of failing, could qualify you for a home insurance price break. 

Green features also can provide an investment for the future. A study by a University of California at Berkeley found that green-certified homes in that state resold for 9% more on average than homes without certification. When you conduct your house hunt, remember the benefits of sustainable living.