Fireman's Fund, which sells commercial insurance for small and midsized businesses and personal lines, has launched the new 'green' homeowners insurance.

Fireman’s Fund offers the new product to homeowners who currently own green homes or who want to upgrade their residences with green features after a loss using environmental safety and efficiency standards. If a home is completely destroyed, it can be rebuilt to green standards, certified as having Leadership in Environmental and Energy Design status.

Homeowners whose residences are already green will be offered a 5% discount on this coverage, applied to the homeowner premium.

The green homeowners insurance is now approved for homeowners in 26 states in the US, with most other states expected to offer the coverage by year-end. The coverage will be available in California as part of the Prestige Home Premier Policy on August 1, 2008.

Donald Soss, chief underwriting officer for Fireman’s Fund personal insurance, said: We believe this is a trend-setting insurance solution for homeowners who are interested in the many benefits of ‘going green’ at home.