Should homeowners face less premiums if they waterproof or climateproof?

Lots of action right now on insurance companies and disasters and costs with reports out from Munich Re and Swiss Re – it must be the time when lots of stats from the season just passed are reported.  Canadian underwriter has also just published a blog post at http://www.canadianunderwriter.ca/news/taking-steps-to-avoid-water-damage-should-be-rewarded-ceo/1001781595/2n414sW52xM20/?link_source=aypr_CU&AF=&utm_source=CU&utm_medium=email&utm_campaign=CU-EN10222012&link_targ=DailyNews where they push for the fact that if homeowners take efforts and spend money to water proof their homes that they should get a break on their insurance.

From this post as well there is a point made that the City of Toronto is paying about $14,000 per home to upgrade infrastructure in about 100 neighborhoods.  A municipal risk assessment tool has also been developed to help municipalities assess (http://www.ibc.ca/en/Natural_Disasters/Municipal_Risk_Assessment_Tool.asp) infrastructure at risk. The question is would you expect the same allowance for climate impacts if a consumer was making their home more climate friendly – of course that is more complicated – how does a consumer make their home more climate friendly – does putting on solar panels count, what about more energy-efficient, passive solar design etc…lots of those the individual insurance company may not care about, but if you build your house to withstand the tornado or local flooding, then the logic of this article would apply.

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