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
Codes and Standards | Mar 18, 2021
Congressmen ask Biden to tackle rising lumber costs
Rising materials costs and supply shortages threaten economic recovery, housing starts.
Codes and Standards | Mar 16, 2021
Massachusetts bill would mandate rooftop solar on new homes, commercial buildings
Proposed Bay State mandate modeled on California’s.
Codes and Standards | Mar 15, 2021
Nevada may create areas for tech companies to form own governments
Legislation calls for ‘Innovation Zones’ that could become smart cities.
Codes and Standards | Mar 11, 2021
Los Angeles commits to carbon-free city buildings
City will take into account embedded carbon when contracting to buy construction products.
Codes and Standards | Mar 10, 2021
‘Smart retrofitting’ will be crucial to net zero aspirations
AI, analytical software, Internet of Things are keys to decarbonization of built environment.
Codes and Standards | Mar 9, 2021
Salt Lake City is first jurisdiction to adopt new standards for off-site construction
Code Council and Modular Building Institute developing standards and compliance protocols.
Codes and Standards | Mar 8, 2021
Hyperlocal zoning could spur more affordable housing construction
Letting blocks and streets pass their own rules could have impact.
Codes and Standards | Mar 5, 2021
Biden builds on Trump’s “Buy American” order
New administration extends preferences for domestic construction materials.
Codes and Standards | Mar 4, 2021
Biden administration overturns Trump’s federal building design mandate
Previous order promoted classical and “traditional” architecture above others.
Codes and Standards | Mar 3, 2021
Texas freeze raises questions about risks of electrifying buildings
Gas stoves helped residents cook, boil water when power went out.