Insurers paying to build greener homes

A disaster wipes you out. Do you rebuild an identical house, or something greener? The notion of green upgrading is something insurers are experimenting with, according to this AP story. It's a theme that also applies in hurricane-prone regions -- often the development agencies rush to rebuild identical structures, which are very vulnerable to high winds. Often a minor, inexpensive upgrade would give much better protection against the next storm.

As one Fireman's Fund official says in the AP story, "It ties back into our view about climate change," said Scott Steinmetz, Fireman's director for personal insurance and catastrophe management. Spurring clients to rebuild to greener standards is an insurer's hedge against climate change, and the worse and more frequent natural disasters that could be brought on by warming global temperatures, Steinmetz said.

They're also seeing green upgrading as a way of retaining customers.