IM 7091-Green Building Coverage

BUILDERS RISK - IM 7091–GREEN BUILDING ANALYSIS

(February 2024)

INTRODUCTION

This endorsement can be attached to any builders risk coverage form except for the IM 7980–Builders Risk Civil Works Project Form. It provides coverage for four green construction costs related to green certification standards in the construction of covered buildings and structures.

IM 7078–Green Building Schedule must be included to list the coverages and limits that apply.

IM 7078–GREEN BUILDING SCHEDULE

Policy Number

Green Building Schedule

Four coverages are available. A limit must be entered for each coverage selected.

Alternative Certification Company

The named insured may use a certification company other than LEED (Leadership in Energy and Environmental Design) or Green Globes. In that case, that company must be listed in the space provided for Alternate Certification Company.

IM 7091–GREEN BUILDING COVERAGE–COVERAGE ANALYSIS

This analysis is of the 07 09 edition.

This coverage form opens by stating that the references to "rehabilitation and renovation project" replace "building or structure" if this coverage form is added to IM 7054–Builders' Risk Coverage–Rehabilitation and Renovation Form. This does not mean that this endorsement is available only with the IM 7054. This is merely an accommodation for when the term rehabilitation and renovation project is used.

ADDITIONAL DEFINITIONS

Three definitions are added.

1. Green Certification

A building's certification based on an environmental rating system. These systems evaluate the building's performance and sustainability through positive environmental design, operation, and management.

LEED or Green Globes are the standard, but if an alternative certification is used, that Alternative Certification Company may be entered in the space provided on IM 7078–Green Building Schedule. A building's certification as green is based on the environmental rating system that determines the performance and sustainability of the building through positive environmental design, operation, and management that company establishes.

2. Renewable Energy Generating Equipment

Equipment that generates electricity by using renewable resources, such as solar, wind, geothermal energy, low impact hydro, biomass, or biogas systems.

 

 

3. Water Conservation System

A water reclamation and conservation system. The plumbing system, underground pipes and pumps, reservoirs, holding tanks, and structures that collect rainwater and/or groundwater are all considered part of this system. However, to be considered part of the system, they must be at or within 500 feet of a covered building or structure and be designed to circulate gray water, ground water, or rainwater to a building's non-potable water supply, an onsite water treatment facility, or an outdoor irrigation holding facility. Equipment intended solely for landscape irrigation is not included unless it is part of the overall water reclamation and conservation system.

COVERAGES

There are four types of green construction costs coverages that may be selected. The costs must be reasonable and necessary and relate to complying with green certification standards in constructing, erecting, or fabricating a covered building or structure.

1. Indoor Air Quality

This coverage applies if the box for Indoor Air Quality on IM 7078–Green Building Schedule is checked and a limit entered in the space provided.

a. Coverage

The insurance company pays the named insured's costs to restore indoor air quality to the standard it set in its Indoor Air Quality Management Plan for the covered building or structure. This applies only when the building or structure first sustains direct physical loss or damage from a covered peril. The company covers these costs only to the degree that the standard was achieved before the loss occurred. The named insured's Indoor Air Quality Management Plan must align with the measures specified for green certification.

b. Cost to Restore Air Quality

These are costs to test indoor air quality, air-flushing procedures as specified for green certification (but only for the space repaired or replaced) and replacing filters other than those that process only outside air.

c. Limit

The Indoor Air Quality Limit on IM 7078–Green Building Schedule is the most paid in any one occurrence for the costs to restore indoor air quality.

2. Recycling Debris

This coverage applies if the box for Recycling Debris on IM 7078–Green Building Schedule is checked and a limit entered in the space provided.

a. Coverage

The insurance company pays the named insured's costs to divert debris of damaged property that can be recycled to a recycling facility instead of to a landfill when a covered building or structure sustains direct physical loss or damage from a covered peril.

b. Coverage Limitation

Only debris from a covered loss to the building or structure can be diverted.

 

Example: An earthquake followed by a fire damages the Fun and Games building under construction. Only the fire loss is covered. The insurance company pays the costs to divert the fire-related debris to a recycling facility, but Fun and Games is required to pay to transport the earthquake-related debris to that same facility.

 

c. Limit

The Recycling Debris Limit on IM 7078–Green Building Schedule is the most paid in any one occurrence for the costs to recycle debris.

3. Recertification

This coverage applies if the box for Recertification on IM 7078–Green Building Schedule is checked and a limit entered in the space provided.

a. Coverage

The insurance company pays the named insured's costs to recertify the covered building or structure according to green certification standards. This applies only when a covered building or structure first sustains a direct physical loss or damage from a covered peril.

b. Recertification Costs

These are certification fees and costs for certified engineers and consultants required for green certification.

c. Coverage Limitation

The recertification costs are capped at no more than those required to achieve the level of green certification that existed prior to the loss.

 

Example: Jones and Company is at the Bronze LEED Certification level. Its five-year rehabilitation plan is to retrofit to achieve Silver Certification. It is making progress, but a fire stops its progress. When it makes repairs following the fire. Jones decides to pay the additional costs to finally achieve Silver Certification. The insurance company will pay for the Bronze LEED recertification costs, and Jones will pay the additional costs needed to obtain the Silver Certification.

 

d. Limit

The Recertification Limit on IM 7078–Green Building Schedule is the most paid in any one occurrence for the costs to recertify the building or structure.

4. Electricity or Water Replacement

This coverage applies if Electricity or Water Replacement on IM 7078–Green Building Schedule is checked and a limit entered in the space provided.

a. Coverage

The insurance company pays the named insured's costs to purchase replacement electricity or water from a public utility because its renewable energy generating equipment or water conservation system sustains direct physical loss or damage from a covered peril and cannot produce the required electricity or water.

b. Coverage Limitation

The insurance company pays these costs only if the named insured's renewable energy generating equipment or water conservation system would have produced electricity or water for its construction project if a loss had not occurred.

c. Time Limitation

Coverage only applies until the named insured's renewable energy generating equipment or water conservation system is repaired or replaced and operates according to manufacturer's specifications. However, coverage does not extend past the policy’s expiration date.

d. Limit

The Electricity or Water Replacement Limit on IM 7078–Green Building Schedule is the most paid in any one occurrence for the costs to purchase replacement electricity or water from a public utility.

5. Separate Limits

The limit for a Green Construction Cost is separate from the limit that applies for coverage as described under Property Covered in the applicable Builders' Risk Coverage Form. It is not part of that limit. The limit cannot be combined with or added to any other limit.

HOW MUCH WE PAY

Deductible

There is not a separate deductible for the green coverages.