Home Energy Savings Backed by New Energy Efficiency Insurance Program
Homeowners who install home efficiency upgrades from Sealed, an energy software company, can get energy savings insured with a new insurance program.
Sealed, empowers homeowners to pay for home upgrades like insulation, air sealing, and smart thermostats with their energy savings, has implemented a residential energy efficiency insurance policy from The Hartford Steam Boiler Inspection and Insurance Company (HSB), part of Munich Re.
This program insures the performance of Sealed's proprietary energy analytics, which both removes energy savings performance risk from homes that finance energy efficiency improvements and increases the confidence of third party capital providers.
Lauren Salz, co-founder and chief operating officer of Sealed said, "Our innovative program brings insurance to the residential energy efficiency market for the very first time, which will allow us to lower the cost of capital and provide the best possible value to our customers."
To develop the insurance program, Sealed worked closely with E-Capital Insurance Services, an innovative energy insurance brokerage that specializes in energy efficiency insurance programs.
"Through this program the obstacles to a homeowner implementing a comprehensive energy efficiency project are almost entirely removed. How can you say 'no' to improved home comfort and energy savings that are insured?" said Marshall Haimson, president of E-Capital Insurance Services.
Sealed calculates energy savings via patent-pending analytics that leverage machine-learning principles to accurately predict energy usage. These energy savings are used to finance energy efficiency improvements like insulation, air sealing, and HVAC upgrades via Sealed's HomeAdvance program in partnership with the New York Green Bank.
In addition to working with the New York Green Bank, Sealed is currently working with several utilities in New York as part of the state's Reforming the Energy Vision (REV) initiative, including National Grid, Orange & Rockland Utilities, and Con Edison. Sealed partners with local contractors to offer HomeAdvance financing to their customers. Collectively, these partners serve geographies that cover over 50% of New York homes.
HSB's Energy Efficiency Insurance product provides a financial and competitive advantage to contractors, building owners and financiers. The coverage helps reduce their technical project risk exposure and balance sheet liability, while increasing confidence in their project's ability to deliver energy savings.
"Residential insurance products must be cost-effective and scalable," said Richard B. Jones, HSB Senior Vice President for Engineering and Research." Utilizing HSB's portfolio underwriting approach to develop this new performance product, residential customers now have ready access to energy efficiency insurance that traditionally has been available only to large commercial and municipal customers."
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