How to Find a Green Home Insurance Policy

You're a 'green' guru. You eat organic food, conserve water and use ultra-efficient home appliances. For you, living 'green' is a way of life-but does your home insurance company share your passion?

Insurance companies are waking up to the fact that a new generation of customers wants everything they buy to be clean and 'green'-especially in their homes.

'Green' Homes Save Money

When consumers 'go green,' insurance companies roll out the discounts. Studies have shown that homeowners who invest in 'green' technology are less likely to suffer accidents and accidental damage. As a result, some home insurance companies offer an insurance discount of 5% to those who own a 'green' home.

'Greening' your home could also save you in other ways. The 2005 Building Energy Data Book estimates that space heating and cooling make up 47% of total home energy usage, and experts say investing in energy-efficient technology could shave 30% off your utility bill each month.

What Makes a Home Insurance Policy 'Green'?

A 'green' home insurance policy promotes environmental sensitivity and responsible energy use.

With some 'green' insurance policies, owners of destroyed or damaged homes will have their structures rebuilt to strict Leadership in Environmental and Energy Design (LEED) standards using bamboo and other sustainable materials. Damaged or destroyed appliances will be replaced with Energy Star-qualified equipment, and construction waste will be hauled to recycling companies rather than junkyards at no additional expense to the homeowner. Some companies even cover inspections of energy systems, such as HVAC, to ensure they're optimized for maximum efficiency.

Some policies extend coverage to homeowners who generate their own energy through solar, wind, geothermal or other means. If during an accident your energy-generating system fails, the cost to purchase power elsewhere would be covered by a participating home insurance company.

How to Find a 'Green' Home Insurance Policy

Finding an environmentally-sensitive home insurance policy is easy if you do your homework. Go online and visit the insurer's website. Check out their 'green' insurance benefits. Do they offer 'green'-themed insurance policies or paperless billing? Do they support environmental organizations? Log on to a home insurance forum to see what other consumers are saying about the company's environmental record.

Another way to judge a company's 'greenness' is inquire directly by telephone or in-person. Here are a few 'green' questions to ask a company representative before purchasing a policy:

  • "Do you offer home insurance discounts for 'green' homes?"
  • "Is your company taking steps to offset its carbon footprint?"
  • "Do you offer paperless billing?"
  • "What materials are used to rebuild damaged or destroyed homes?"
  • "Does your 'green' home insurance policy extend coverage to homeowners who create their own energy?"
  • "What environmental organizations, if any, does your company support?"

Is your home a beacon of eco-friendly design? Do you use solar panels or wind turbines to provide energy in your home? Are your carpets, rugs, window treatments made from natural and sustainable materials? If so, shouldn't your home insurance policy reflect your 'green' way of life?

Even if you don't own a 'green' home, you can still help the environment by investing in an eco-friendly home insurance policy. Make the entire neighborhood 'green' with envy with a home insurance policy that helps protect the environment from InsWeb.com.