A home surrounded by shrubbery with solar panels on the roof

An Overview of Sustainable Real Estate Development

kase
Mar 25 2024

There’s an ever-growing concern about the continuous rise in pollutants and chemicals in our environment. Air pollution alone accounts for more than 15,300 premature deaths in Canada each year, with older adults and younger children at the greatest risk. 

Health concerns are one of the many factors behind the increased urgency to address pollution and climate change. A shift toward sustainable real estate development practices is one proposed solution, but what exactly are they? 

In this blog, we’ll be explaining exactly what this means and provide some tips on how to future-proof your real estate business.

What Is Sustainable Real Estate Development? 

When you inject eco-friendly designs, techniques, and materials into the market, you get sustainable real estate. It’s the process of developing longer-lasting public and private spaces with sustainability in mind. 

Annual global carbon dioxide emissions are largely caused by the built environment, with building materials such as aluminum, steel, iron, and cement—some of the most commonly used in construction—responsible for 15% of global CO2 emissions.

As such, one of the most straightforward sustainable real estate practices is using materials that don’t increase a building’s carbon footprint. This goes hand-in-hand with reducing wasted natural resources and pollution when building homes or commercial spaces. Not only does this help the environment, but it also decreases operating costs.

Luckily, this movement is starting to grow in popularity. More home buyers and property owners are becoming mindful of using sustainable materials in construction, as well as exploring other avenues to continue being eco-friendly.  

A real estate developer asking for a property buyer their signature on a document Image source: Canva

The Benefits of Sustainable Real Estate Development 

According to the World Green Building Council, the real estate industry accounts for 37% of the annual greenhouse gas emissions. These accelerate climate change, which brings with it adverse outcomes worldwide for humans and animals. 

Adopting sustainable real estate techniques means doing your part to limit pollution and ensure the conservation of our most crucial natural resources. This in turn makes the world a safer and healthier place for everyone. 

However, the benefits of sustainable real estate development don’t stop there. 

Sustainable buildings improve indoor air quality, insulation, and overall comfort, ensuring a healthier home for its occupants. This, combined with lower utility costs for tenants thanks to improved energy efficiency, is why green buildings are often more valuable. This allows those who own them to charge higher prices and rental fees. 

As a developer, the initially higher costs of sustainable real estate will be offset by getting more out of your properties. You’ll be creating buildings that are desirable to people who are looking to be eco-friendly as well as those concerned with energy costs. 

Ultimately, sustainable real estate developments are a win-win for the planet, developers, real estate investors, and those who occupy them. 

Mitigating the Challenges in Sustainable Real Estate Development

Sustainable development is rarely a walk in the park. You can expect to experience many roadblocks as a developer, which is why you need to have risk management strategies in place to protect yourself from losses. One way to do that is through insurance policies.

In most provinces and territories in Canada, real estate developers and their projects must be professionally insured. The right policies can protect your projects against damages caused by vandalism, fire, or natural disasters. It could also help cover costs associated with personal or third-party injuries, property damage, or theft. 

In particular, real estate development insurance can help with the following issues:  

Bodily Injuries

This occurs if you, an employee, or a client of yours get hurt while on your property. One example would be a home buyer slipping during a property showing. 

They could then file a lawsuit against your business, which could lead to a lengthy legal battle. The costs from this situation, on top of the medical fees you’ll be expected to pay, could result in the bankruptcy of your real estate business. You can prevent this and cover all accidental costs with general liability insurance.

Environmental Pollution

Even sustainably-minded real estate projects can unintentionally cause pollution, which can irrecoverably damage the surrounding area. 

Pollution liability insurance can cover environmental claims and legal fees borne out of this situation, including mould and legionella contamination. This insurance policy also includes coverage for environmental cleanup and emergency response costs. 

 Solar panels that produce renewable energy in the middle of a city 
Image source: Canva

Property and Equipment Damage

Buildings under construction are susceptible to multiple risks, many of which are caused by natural disasters such as floods and fires. They may also fall victim to vandalism or theft, both of which can derail your operations and cause serious losses. 

Having builder’s risk insurance as part of your real estate development insurance bundle will help cover these costs and save you from financial strain. This policy also covers the tools and equipment you use to construct these buildings. 

Get Real Estate Developer Insurance From KASE

While sustainable real estate development is crucial to saving our natural resources, protecting your investments is just as important. So, it’s time to protect your business with real estate development insurance from KASE Insurance.

We have a long-standing reputation for providing high-quality insurance services to all of our clients. We customize your insurance plans to cover your unique needs to ensure you only pay for what you need—no unnecessary costs guaranteed.

Get a quick quote or contact us today to learn more about how you can protect your business so you can embrace sustainable real estate! 

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