Green building is a growing market segment. It's a rewarding feeling to build your home with either recycled or energy efficient materials. I want to build a cabin using recycled tires. Not a bad idea but from an insurance perspective it's a little more complicated.
Companies are trying to find "green" materials in a effort to support a growing market segment. Sometimes these efforts produce the wrong result as has been seen with the "Chinese Drywall" scare. see http://www.irmi.com/expert/articles/2010/slivka01-risk-management-environmental.aspx for more information.
Builders need to understand their insurance policies. New policies in areas impacted by Chinese drywall may include exclusions for work done with the product. Builders tend to sign exclusions quickly (ie the EIFS exclusion seen for stucco contractors) without thinking through the impact. In a down economy there are few builders that would turn down a project and if there's the chance of working within the scope of an exclusion the builder needs to call his insurance agent quickly - before work is started!!!
Feel free to call 719-531-7000 with questions!
Saturday, February 13, 2010
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