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
BIM and Information Technology | Feb 23, 2015
9 best practices for effective laser scanning
JE Dunn’s National BIM Director, Trent Nichols, offers tips and advice for mastering the art of laser scanning.
Modular Building | Feb 23, 2015
Edge construction: The future of modular
Can innovative project delivery methods, namely modular construction, bring down costs and offer a solution for housing in urban markets? FXFOWLE’s David Wallance discusses the possibilities for modular.
Contractors | Feb 23, 2015
Rising Nonresidential Construction Index comes with struggles, FMI reports
Construction companies face the challenge of having enough people to keep up with increasing backlogs.
Green | Feb 23, 2015
State of the green union, and the next big shift in sustainability
The history of the green movement offers cues that we are on the precipice of another significant shift in the green union.
| Feb 23, 2015
Where are the iconic green buildings?
What does a green building look like? How would you know one if you saw one? Maybe a trivial question to some, but of great interest to architects, designers, and other members of the Building Team as the rapid evolution of sustainable buildings continues apace.
University Buildings | Feb 20, 2015
Penn strengthens campus security by reviving its surrounding neighborhood
In 1996, the University of Pennsylvania’s sprawling campus in Philadelphia was in the grip of an unprecedented crime wave. But instead of walling themselves off from their surrounding neighborhoods, the school decided to support the community.
Engineers | Feb 20, 2015
PwC reports record year for M&A activity in engineering and construction
Worldwide engineering and construction industries closed 218 M&A deals in 2014 worth more than $172 billion, according to a PwC report.
Multifamily Housing | Feb 19, 2015
Is multifamily construction getting too frothy for demand?
Contractors are pushing full speed ahead, but CoStar Group thinks a slowdown might be in order this year.
Building Materials | Feb 19, 2015
Prices for construction materials fall in January, following plummet of oil prices
The decline in oil and petroleum prices finally showed up in the produce price index data, according to ABC Chief Economist Anirban Basu.
Codes and Standards | Feb 18, 2015
USGBC concerned about developers using LEED registration in marketing
LEED administrators are concerned about a small group of developers or project owners who tout their projects as “LEED pre-certified” and then fail to follow through with certification.
