Insurance companies are now able to offer their commercial customers the option of rebuilding damaged property with environmentally friendly building materials.
Insurance Services Office (ISO), which writes the standard policy forms used by most insurance companies, recently filed the industry’s first standard coverage option for rebuilding commercial property with green materials. With their new green form, it will be much easier for insurance companies to offer green coverage.
The ISO form has three major components. A green coverage upgrade allows businesses to repair damaged property using more energy-efficient, environmentally preferable materials. Related expense coverage provides additional limits for costs such as recycling, design and engineering fees. A business interruption option extends the period of restoration.
According to ISO, commercial buildings are major energy consumers as well as major waste generators. Many real estate owners want to address environmental issues, and this new policy form will allow insurers to help their customers rebuild green.
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