REGEN-03: Insurance Model for Reused Building Materials - A Scalable Framework for Circular Construction

The project aims to develop an insurance model specifically tailored to address the risks associated with using reused construction materials. Currently, the lack of suitable insurance and liability frameworks is a key barrier to scaling circular building practices. In collaboration with insurance providers and implementation partners from the construction industry, the goal is to create an insurance product that supports risk mitigation in the form of a validated concept or pilot-ready model. In collaboration with the partners, the project will evaluate whether a standalone policy or an add-on to existing construction insurance is the most suitable outcome. The vision is to establish a viable insurance model that de-risks the use of reused materials in construction projects. The model will be co-developed with an insurance company and supported by experienced implementation partners from the construction industry. It will clarify core questions regarding liability, ownership, and applicable insurance types (e.g., building warranty, builder’s risk, third-party liability).
Stakeholders across the building sector (including planners, developers, insurers, and contractors) will benefit from a solution that enables circular practices while providing legal and financial certainty. The model aims to establish reference standards that encourage additional insurance companies to integrate reused materials into their coverage, building on existing examples while creating a scalable and transferable solution for the wider construction industry.

The approach bridges technical, legal, and economic gaps, establishing a systemic enabler that not only opens up new opportunities for insurers, but also provides tangible incentives for clients and planners to adopt reuse-based design as a viable standard in future construction projects.