TMHCCI adds greening endorsement for overseas Japanese subsidiaries
Tokio Marine HCC International (TMHCCI) has added a free green upgrade endorsement to commercial property polices held by subsidiaries of Japanese firms to improve the environmental impact of rebuilt properties.
Launched by TMHCCI’s Japanese division, the endorsement enables insureds to reinstate properties in a way that will minimise their environmental impact by using the latest available technology.
The endorsement will apply to policies from 1 August.
Cover is triggered by total loss insured events when damage is 80% or more of the building’s sum insured or at least 80% of the contents or tenants improvement sum insured.
The endorsement will cover additional rebuild costs caused by environmental upgrades totalling £1m or 10% of the total loss, whichever is lower.
It will also provide business interruption cover if the greening adds extra time to the reinstatement. This cover will be limited to the business interruption indemnity period in the policy schedule.
The endorsement covers a wide range of greening activities such as upgrading taps, showers, urinal toilets and grey water and rainwater systems. It also covers upgrades to air conditioning and building cooling systems, ventilation systems, hot water and heating systems, lighting and green roofs.
The cover is available to businesses that have a Japanese parent company. Most risks are located in the UK but cover is available on an international basis, said TMHCCI.
The endorsement only applies to TMHCCI policies and not those from Tokio Marine Europe.
Simon Hewitt, head of P&C of Japanese business at TMHCCI, said: “The green upgrade endorsement will enable clients to improve the environmental performance of their commercial properties following a total loss.”
“This technique is known as ‘greening’ and, under the new endorsement, it will not be classed as betterment. Offering this broader scope of cover is part of our commitment to support our clients and the wider world in which we live,” he added.