It’s hardly a secret that insurers are willing to give owners of hybrid and other fuel-efficient cars a break on car insurance. But are they taking the same green path on home insurance? It sure looks that way.
Enviromentally-conscious consumers are looking for businesses that adhere to their “green” principles and insurance companies know it. For years now, Travelers Insurance (Stock Quote: TRV) has offered insurance discounts to drivers of hybrid motor vehicles of up to 10% of the entire policy.
That program ran so well that Travelers is now out with a homeowners’ insurance policy that cuts 5% off your insurance if you buy a LEED-certified home.
"LEED" is a clinical housing term for green. According to the U.S. Green Building Council, LEED is “an internationally recognized green building certification system, providing third-party verification that a building or community was designed and built using strategies aimed at improving performance across all the metrics that matter most: energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, and stewardship of resources and sensitivity to their impacts.”
There could be additional savings in LEED-approved homes. The Council also estimates that green homeowners can save 40% in energy usage, compared to traditional homes. Throw in efficient plumbing, drought-tolerant landscaping and water-conserving irrigation systems, and homeowners can not only save money on their homes, but insurance companies are more likely to reward them with price breaks on home insurance.