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
| Apr 12, 2011
Mitsubishi commissions electric power manufacturing plant in Memphis
Greenville, S.C.-based design and construction firm O’Neal Inc. is providing design, engineering, procurement, and construction services for Mitsubishi Electric Power Products.
| Apr 12, 2011
BIM Grows Up: Separating Hype from Reality in a 3D World
While BIM adoption still lags in both design and construction, some enterprising owners, architects, and contractors are unlocking the potential of this dynamic technology.
| Apr 12, 2011
Metal cladding: Enhancing design with single-skin panels, MCMs, and IMPs
Single-skin metal panels, metal composite panels, and insulated metal panels can add both aesthetic and functional value to your projects, if you use them correctly.
| Apr 12, 2011
American Institute of Architects announces Guide for Sustainable Projects
AIA Guide for Sustainable Projects to provide design and construction industries with roadmap for working on sustainable projects.
| Apr 5, 2011
What do Chengdu, Lagos, and Chicago have in common?
They’re all “world middleweight cities” that are likely to become regional megacities (10 million people) by 2025—along with Dongguan, Guangzhou, Hangzhou, Shenzhen, Tianjin, and Wuhan (China); Kinshasa (Democratic Republic of the Congo); Jakarta (Indonesia); Lahore (Pakistan); and Chennai (India), according to a new report from McKinsey Global Institute: “Urban World: Mapping the economic power of cities”.
| Mar 22, 2011
San Francisco ready to test hiring law
San Francisco's new construction law, billed as the nation’s toughest local hiring ordinance, establishes strict requirements for how many work hours on city-financed projects must be completed by city residents, starting with 20% this year. It also requires that a set percentage of hours be performed by low-income workers. The requirements apply to municipal construction projects worth more than $400,000 within 70 miles of the city.
| Mar 15, 2011
Passive Strategies for Building Healthy Schools, An AIA/CES Discovery Course
With the downturn in the economy and the crash in residential property values, school districts across the country that depend primarily on property tax revenue are struggling to make ends meet, while fulfilling the demand for classrooms and other facilities.
| Mar 11, 2011
University of Oregon scores with new $227 million basketball arena
The University of Oregon’s Matthew Knight Arena opened January 13 with a men’s basketball game against USC where the Ducks beat the Trojans, 68-62. The $227 million arena, which replaces the school’s 84-year-old McArthur Court, has a seating bowl pitched at 36 degrees to replicate the close-to-the-action feel of the smaller arena it replaced, although this new one accommodates 12,364 fans.
