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Your Green Home Will Save You Money on Insurance

Houses can be the biggest pollutants on earth according to CBS Money Watch. These release more CO2 into the atmosphere than cars do. Additionally, building conventional homes costs millions of trees and creates millions of gallons of dirty water. It is information like this that has consumers actively looking for greener homes and contractors who use green building methods. However, there are also financial benefits to owning a green home, as these can save money on utilities, offer important tax cuts and even save on insurance rates.

Home Savings

As of 2012, the green home industry accounts for about 20 percent of new home construction, according to a CBS Money Watch report, and over 90 percent of these green home owners say that they place more value over the financial savings of the green home than they do on the environmental or health value. On average, each square foot cost of $4 brings savings of $58 per square foot over a 20 year period – and that is a substantial savings.

Your Green Home


Where Do These Savings Come from?

1 – Energy savings – There are different levels of green or energy efficiency. While some homes are completely green, others only meet certain green standards. Still the savings can come from running energy efficient appliances and saving as much as $235 per year in both water and energy bills.

2 – Tax credits – People building new greener homes can also take advantage of federal tax credits available for efficient home appliances, windows and features. Solar panels, water heaters, wind energy and fuel cell systems are eligible for these tax credits which can be as much as 30 percent of the cost.

3 – Home owners insurance – To reward consumers for building energy efficient greener homes some home owners insurance providers offer green home discounts for using sustainable materials or energy efficient appliances. Be sure to ask for these discounts when buying or building a green home. However, you may also be eligible for these discounts when you make changes, additions, remodel or add greener home products. Adding low environmental impact lighting, heating and cooling systems, insulation, windows, plumbing fixtures or roofing materials may make your home eligible for these discounts. However, each policy is different so you’ll need to check with your insurance agent. You also want to make sure you carry the right amount of coverage to make repairs the home may need in any potential loss, and you want to ensure this coverage is enough to make the eco-friendly repair work with environmentally sustainable products.

Your Green Home Money on Insurance


Bottom Line

Green homes offer substantial financial savings in all respects. They save on electricity and water; they offer long lasting wear and save on environmental resources. But they can also offer initial tax benefits and homeowners insurance policy discounts. If you buy a green home, or make any green changes to your existing home, you should look into exploring all savings options, including that of asking your insurance provider for available insurance discounts. Just make sure whatever discounts you are offered, don’t influence the coverage needed to replace these environment sustainable products.

Angela Brady is a professional insurance agent with years of experience. She enjoys writing to help keep her readers informed about various topics related to the industry. Click for valuable information about an independent home insurance agency homeowners insurance.