New sustainable energy products using new and emerging technology make it difficult for insurance carriers to assess risk on green building projects.
Unlike on projects using standard materials, underwriters cannot look to many years of rigorous testing to see how products perform. This makes it hard to assess risk and offer policies on projects that use advanced features such as vegetative roofs, mass timber, or advanced solar panel technology.
New technology, materials, and construction methods can bring unforeseen risks, insurance executives say. Many green buildings have novel designs compared with those using conventional construction where much has been done the same way for years and the risks are well known.
Business interruptions caused by material damage in green building construction have generated costly and complex claims. These claims concern both the expense of replacing the damaged material and the amount of time it takes to replace it, especially given current supply chain difficulties.
Related Stories
Architects | Aug 1, 2018
Client experience as competitive advantage for AEC firms
Clients are looking for solutions to their business problems from collaborative advisors. They’ve come to expect a higher level of service and detail than what was provided in the past.
Codes and Standards | Jul 31, 2018
Workers allegedly held in captivity by construction subcontractor in San Jose pay theft case
Contractor pays $250,000 in back wages in Dept. of Labor enforcement action.
Building Team | Jul 30, 2018
Construction tech is the new investment darling for VC funds
In the first half of 2018, venture capital firms invested $1.05 billion in global construction tech startups, setting a record high.
Modular Building | Jul 23, 2018
Offsite construction: Why it’s important for the survival of your firm
The industry is approaching its “heart attack moment,” with so many large projects that are chronically late, over budget, and unprofitable, writes FMI Capital Advisors’ Michael Swistun.
Building Owners | Jul 17, 2018
Are we facing a new era in Foreign Direct Investment?
The construction industry is already feeling the effects of the recent tariffs, not only with higher steel and aluminum prices, but with higher prices on Canadian lumber.
Office Buildings | Jul 17, 2018
Transwestern report: Office buildings near transit earn 65% higher lease rates
Analysis of 15 major metros shows the average rent in central business districts was $43.48/sf for transit-accessible buildings versus $26.01/sf for car-dependent buildings.
Giants 400 | Jul 16, 2018
5 'giant' trends poised to change the face of construction
We’ve identified five emerging trends that are likely to transform the construction market in the near future.
Adaptive Reuse | Jul 9, 2018
Work, park, live: Inside Cincinnati’s parking garage turned lifestyle hotel
The Summit hotel and conference center is a converted parking garage that was once a factory.
Accelerate Live! | Jun 24, 2018
Watch all 19 Accelerate Live! talks on demand
BD+C’s second annual Accelerate Live! AEC innovation conference (May 10, 2018, Chicago) featured talks on AI for construction scheduling, regenerative design, the micro-buildings movement, post-occupancy evaluation, predictive visual data analytics, digital fabrication, and more. Take in all 19 talks on demand.
Multifamily Housing | Jun 13, 2018
Multifamily visionaries: KTGY’s extraordinary expectations
KTGY Architecture + Planning keeps pushing the boundaries of multifamily housing design in the U.S., Asia, and the Middle East.
