Farmers Insurance covers green reconstruction

An Energy Star house.

Farmer's Insurance announced in late February a new amendment for customers that want to rebuild or replace property with green building materials, regardless of whether or not the damaged property incorporated green building attributes.

The “Eco-Rebuild” rider adds 2 percent to the overall policy's premium and pays up to $25,000 to cover the extra costs of choosing green building materials and processes. This includes paying the costs associated with Energy Star home certification. The company would replace any lost appliances with Energy Star-rated appliances in the event of loss. It would cover the recycling costs of construction debris. And, in the event that an alternative power generating equipment is lost or damaged, it would refund the cost of using grid power.

Homeowners who choose the Eco-Rebuild rider and lose all or part of their structure can rebuild their home according to one of many green building rating systems. Carpeting must pass the Carpet and Rug Institute's standards for low emissions; and wood for millwork ceilings, siding and framing must be certified by the Forest Stewardship Council and come from within 100 miles of the home, where available.

The Eco-Rebuild rider is currently available in Arizona, Colorado and Oregon and will be offered in Washington in April, according to the company. Farmers Insurance says it plans to roll out the product in the 25 other states in which it does business by July 1, 2009.