Leadership in Energy and Environmental Design (LEED) is an internationally recognized green building certification system developed by the U.S. Green Building Council (USGBC). 

Over the past decade, LEED certification has become an increasingly popular objective for builders and owners of commercial and residential properties. According to the USGBC, more than 36,000 commercial projects and 38,000 single-family homes have already participated in LEED since the rating system was first introduced in 2000. The volume of participating properties is enormous—about six billion square feet of projects are registered, and developers of another six billion square feet of projects are currently pursuing certification. 

Although claims adjusters are generally familiar with the LEED concept, relatively few among them possess comprehensive knowledge of how LEED certification affects the recovery process following a disaster, such as a flood or fire. This knowledge gap creates risks for both the insured and the insurer, but adjusters can close that gap by more carefully assessing how restoration of an insured LEED-certified property differs from disaster recovery for real estate not certified by LEED.

Expensive Restoration Risks

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