Comments on: Greening Risks and Rewards – the Insurance Perspective (Part I)

By: Random Thoughts on LEED Challenges and De-certification | Construction Law Musings- Richmond, VA

Tue, 08 Jun 2010 20:19:54 +0000

[...] Wisconsin. This policy by the USGBC creates more questions than it answers, for example, how will insurance companies and bonding companies deal with the totally uncontrollable possibility of a certification [...]

By: Martha

Martha — Mon, 22 Feb 2010 16:02:47 +0000

Roger, you raise some great points that highlight your skill on behalf of your HOA clients. While I cannot speak generally to how an insurer will address these questions in the abstract (it always depends on the precise facts and specific policy language), I highly recommend you take a look at the language of your clients’ existing HOA policies, particularly the D & O, E & O or Association Board endorsements, to see if there are express exclusions that would take “green” decisions out. I doubt existing language is that restrictive or pointed. Errors & omissions-type coverages generally extend to decision-making activities, subject to the exclusions, so that is the place I would look for coverage clarification. If you do see exclusions that could apply to these types of decisions, it might be time to contact the HOA insurance agent and discuss adding cover to the policies that would extend to “green” decisions.

Cheers,

Martha

By: Roger Wood

Roger Wood — Sun, 21 Feb 2010 22:28:02 +0000

Martha – great posts. But my question comes from being the often cynical homeowners association attorney. Green is the new black and we’re moving in that direction in all kinds of arenas. But what do you think insurance will do with the directors’ and officers’ coverage? Will my clients that are forced to “undo” the builder’s green contruction be protected for deciding to “ungreen” the common elements? Will insurance with a green bent agree to protect the Association when a homeowner claims breach of duty?

I may be just thinking out loud and these thoughts may seem outlandish, but I regularly counsel clients that after builder/developer control, the homeowner board is begging to undo developer-entered contracts, rip out features that will cost more money to maintain and rethinking interpretations of deed restrictions that might protect “green” architectural changes. Just a few musings from my HOA/Condo world. Thanks again for the post!
Roger Wood´s last blog post ..Deed Restrictions from Days Gone By and a Warning for Boards Today

By: Christopher G. Hill

Christopher G. Hill — Mon, 24 Aug 2009 18:06:28 +0000

Thanks to Martha Sperry for the great guest post.

By: Twitter Trackbacks for Greening Risks and Rewards – the Insurance Perspective (Part I | Construction Law Musings- Richmond, VA [constructionlawva.com] on Topsy.com)

Sat, 22 Aug 2009 02:41:47 +0000

[...] Greening Risks and Rewards – the Insurance Perspective (Part I) | Construction Law Musings- Richmo… constructionlawva.com/greening-risks-and-rewards-the-insurance-perspective-part-i – view page – cached A discussion of the green building aspects of insurance coverage — From the page [...]