Newer materials for green, resilient building complicate insurance underwriting

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.

A long-shuttered rail station in Fresno, Calif., will be renovated to serve as the city’s high speed rail (HSR) station as part of the California High-Speed Rail Authority system, the nation’s first high speed rail project. California’s HSR system will eventually link more than 800 miles of rail, served by up to 24 stations.

Contractors | Jul 9, 2024

The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of June 2024

Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 8.4 months in June, according to an ABC member survey conducted June 20 to July 3. The reading is down 0.5 months from June 2023.

Government Buildings | Jul 8, 2024

GSA adopts new accessibility guidelines for federal properties

The U.S. General Services Administration (GSA) adopted a new rule with new accessibility guidelines for federal buildings. The rule establishes that pedestrian facilities in the public right-of-way are readily accessible to and usable by people with disabilities.

Office Buildings | Jul 8, 2024

Office vacancy peak of 22% to 28% forecasted for 2026

The work from home trend will continue to put pressure on the office real estate market, with peak vacancy of between 22% and 28% in 2026, according to a forecast by Moody’s.

Two businessmen testing virtual reality headset

Virtual Reality | Jul 8, 2024

Can a VR-enabled AEC firm transform your project?

With the aid of virtual reality and three-dimensional visualization technologies, designers, consultants, and their clients can envision a place as though the project were in a later stage.

Green | Jul 8, 2024

Global green building alliance releases guide for $35 trillion investment to achieve net zero, meet global energy transition goals

The international alliance of UK-based Building Research Establishment (BRE), the Green Building Council of Australia (GBCA), the Singapore Green Building Council (SGBC), the U.S. Green Building Council (USGBC), and the Alliance HQE-GBC France developed the guide, Financing Transformation: A Guide to Green Building for Green Bonds and Green Loans, to strengthen global cooperation between the finance and real estate sectors.

Codes and Standards | Jul 8, 2024

New York State building code update would ban fossil fuels in new buildings

New York’s Building Code Council is set to include the All-Electric Buildings Act in its 2025 code update. The Act would ban natural gas and other fossil fuels in new buildings.