Two things the majority of people in Ontario are looking to do more of:
- Save money
- Being sustainable
One way we can do both is by creating a more sustainable, energy-efficient home. Just like a Brant County couple did by building a $70,000 “earthship”.
WHAT IS A SUSTAINABLE HOME?
A sustainable home is one that’s designed and built to minimize its environmental impact, reduce energy and water consumption, and create a healthier living environment for its occupants.
A home can be considered sustainable by:
- Being more energy efficient. Using double or triple-glazed windows, high-quality insulation, and smart systems to reduce electricity consumption.
- Conserving water. Installing low-flow toilets and showerheads, harvesting rainwater and planting drought-tolerant native plants.
- Designing smart. By doing things like maximizing natural light and heat in winter/shading in summer, installing an HRV (heat recovery ventilator) or building smaller homes with a compact design that requires less energy and material
CAN MY SUSTAINABLE HOME BE COVERED BY HOME INSURANCE?
Yes, of course, your sustainable home can be covered by home insurance.
Since most standard home insurance policies cover things like structural damage (from fire, wind, etc.), your personal belongings (“contents insurance”), liability (if someone slips and falls on your property), etc., a sustainable home can be covered.
However, the specific materials and systems used in a sustainable home may influence the cost, coverage limits, or eligibility requirements of home insurance.
SPECIAL HOME INSURANCE CONSIDERATIONS FOR SUSTAINABLE HOUSES
If you’re looking for home insurance to insure your sustainable house, here are some things you may want to consider.
1. Eco-Friendly Materials
Some insurers may ask for documentation on sustainable materials (e.g., bamboo flooring, recycled insulation) to determine repair/replacement costs.
Some green materials may cost more to replace, which could affect home insurance premiums since overall home replacement cost is a factor in determining the cost of home insurance.
2. Renewable Energy Systems
Solar panels, wind turbines, and geothermal systems may not be fully covered under a standard policy. Ask your provider about these specific items.
You might need a rider or endorsement (an add-on to your policy) for full coverage.
3. Energy-Efficient Appliances
Appliances with ENERGY STAR ratings are generally covered, but keep receipts and product details to simplify claims.
4. Green Rebuild Coverage
Some insurers offer “green rebuild” options — allowing you to rebuild with sustainable materials after a loss, even if your original home wasn’t built that way.
BENEFITS OF A SUSTAINABLE HOME?
Aside from being ahead of the curve and doing your part for the environment, there are other benefits of having a sustainable home that are more personal (and that’s ok!).
- Lower utility bills
- Improved indoor air quality
- Higher home value
- Reduced dependence on resources
- Potentially lower home insurance costs (ask your provider about green home discounts)
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
